Unveiled on Thursday at the watch industry's biggest annual tradeshow, BaselWorld, the glittering wristwatch, called "Hallucination", is set with a multitude of rare coloured diamonds.
Gemologists, designers and craftsmen had spent thousands of hours to get the watch right, said the jeweller.
"The Graff Hallucination is a sculptural masterpiece; a celebration of the miracle of coloured diamonds," said company chairman Laurence Graff in a statement.
"For many years I have thought about creating a truly remarkable watch that illustrates our all consuming passion for diamonds," Graff said.
"The Hallucination has made my diamond dream a reality."