In a cigar shaped Bose-Einstein condensate, explicit solutions of the coupled meanfield equations, describing defect-grey soliton dynamics are obtained, demonstrating the coexistence of grey soliton and a localized defect. Unlike the case of dark soliton, where the defect trapping center has vanishing superfluid density, the moving grey soliton necessarily possesses a finite superfluid component at the defect location. The wave vector of the impurity is controlled by the velocity of the grey soliton, which has an upper bound. It is found that the presence of the impurity lowers the speed of the grey soliton, as compared to the defect free case, where it can reach the sound velocity. The grey soliton's energy gets substantially modified through its interaction with the defect, opening up the possibility of its control through defect dynamics.