Announcing new laws allowing people to defend their homes, Mr Grayling said householders would not be prosecuted unless their response is "grossly disproportionate".
He told the Tory party conference in Birmingham: "None of us really knows how frightening it would be if we were confronted by a burglar in the middle of the night, or how terrified we'd feel if we thought our family was in danger.
"You might well hit out in the heat of the moment, without thinking of anything but protecting your loved ones. And right now you're still not sure the law is on your side.
"I think householders acting instinctively and honestly in self-defence are victims not criminals. They should be treated that way.
"That's why we are going to deal with this issue once and for all."
