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Grain production in the Mid-South US has exceeded traditional grain bin storage capacity in recent years. Alternative grain storage methods were adopted. One method was grain bag storage. Little research was available to describe the internal environment of grain bags and its effects on grain quality. Further research was required to assess this storage practice and describe best management practices. The objectives of this study were to determine the internal environment and quality of dried grains stored in grain bags. An instrumentation system of thermocouples and relative humidity sensors was developed. Dried new crop corn (14.1 % MCwb) and soybeans (10.4 %MCwb) purchased from an elevator were stored in grain bags for 20 and 16 weeks, respectively. There were significant differences between grain in the center of the bag and peripheral temperature, with the periphery closely tracking ambient conditions. Psychrometric calculations (vapor pressure and dew-point) indicated that moisture could migrate to the bag edges. Temperature within the grain mass never fell below the temperature required for condensation, condensation at the bag internal surface was likely. Grab samples did not reflect significant differences in grain moisture content across the bag profile. Dried corn maintained its quality while in storage, while soybeans lost one US grade.