This article examines how databases can be integrated into the grid. It also investigates the requirements of grid middleware enabled databases and how the databases can be made available on the grid for access by distributed application. Grid database propose a Service Based Architecture i.e., the database system are wrapped within a Grid enabled service interface that simplifies the task of building applications to access their contents. The paper proposes a framework for federating database servers over the grid, in which service federation middleware connects to the service interfaces of the set of database systems to be federated and creates a “Virtual Database System”. While the paper focuses on federating database system, it also argues that the service based approach will simplify the task of integrating databases with file-based data on the grid where that is required. For example if you need to analyze a lot of data from different computers all over the globe, you could ask the grid to do this. Then the grid could find out where the most convenient source of the data is, without specifying anything and do the analysis on the data wherever it is. The ability to federate data from multiple databases is likely to be a very powerful facility for Grid users wishing to collect and analyze information distributed over the Grid.