Graham, 29, suffered a knee injury last season and tallied an underwhelming 605 yards and two touchdowns in 11 games in his first season for the Seahawks.
In the previous four seasons, he scored 46 touchdowns.
Graham ruptured his right patellar tendon in November, landing on season-ending injured reserve. His week one status is still unknown, but Carroll said that status will be decided next week.
Graham said he now weighs 260 - dropped 15 pounds since last season. Said the rehab process is twice as hard as practices. #SeahawksCamp— Liz Mathews 710 ESPN (@Liz_Mathews) August 10, 2016
"Jimmy has been practicing full-go, and we're thrilled about it," Carroll told Seahawks.com. "He is too, he has had a lot of fun being back out with the fellas and all. He had a full week of practice, he'll have another full week of practice, and we'll just keep taking it day-to-day."
It would appear Jimmy Graham has been activated from the Physically Unable to Perform list.— Danny O'Neil (@dannyoneil) August 10, 2016
"It's a day-to-day thing to see how he recovers, but he's doing great, and we'll see what that means," Carroll said. "We won't know until late next week."
In early August, Graham told 710 ESPN's Liz Mathews that he dropped 15 pounds since last season. He was activated from the physically unable to perform [PUP] list on Aug. 10.
Graham signed a four-year, $40 million contract with the Seahawks in 2014. He was traded from the New Orleans Saints in March 2015 for a first round draft pick and center Max Unger. The Saints also gave up a fourth-round pick in the deal.