Exploring Italian 1

Grazie is the basic way of expressing thanks in Italian.

Other ways of expressing thanks are:
grazie mille
molte grazie
grazie tanto
grazie infinite

(thank you very much)

(many thanks)
(thanks a lot)
(thank you so much)

Grazie is used to thank someone, to accept or decline an offer or an invitation.

Look at these examples.
Anna: LUniversit per Stranieri? l. Vieni, anche noi andiamo l.
(The University for Foreigners? Its over there. Come on, were also
going.)
Mike : Ah, bene. Grazie. (OK, thank you.)
[Mike thanks Anna for showing him where the university is.]
Anna: Vuoi un caff? (Do you want some coffee?)
Mike : S, grazie. (Yes, please.)
[Mike accepts Annas offer]
Lisa : No, grazie. (No, thank you.)
[Lisa declines Annas offer]
PLEASE NOTE: In Italian grazie is used with both s (yes) and no (no).

When someone says grazie, you are supposed to reply prego (you are welcome).
Another way of replying to grazie is di niente.
Not replying is considered impolite.
Prego can also be used by:
a shopkeeper with the meaning of How can I help you?
someone who lets you go first with the meaning of After you! or leads the
way meaning Come this way, please.
someone who invites you into a room or a house with the meaning of Please,
come in.