The Duchess of York shared her “excitement” about the new family member on Monday's The One Show. Princess Eugenie and her husband Jack Brooksbank welcomed their first-born August in February.
Sarah, who appeared on the BBC One programme to discuss her new novel Her Heart For A Compass: A Novel, said she was "so proud" of her daughter.
She added that her youngest daughter is already a "great mother”.
The Duchess said: "I've had sisters, daughters, and now it's Barbies put to one side.
“Now I've got to get into cars and trucks and engines... although, it has to be said, if lovely August wants Barbies, we will bring the Barbies back out.
"I think in life, we never judge anybody or anything, just go for the heart.
“It is really exciting and of course it is my age group."
Sarah also mentioned Princess Beatrice’s step-son, Christopher Mapelli Mozzi, known as Wolfie, who Beatrice's husband Edoardo Mapelli Mozzi co-parents Wolfie with his ex-partner Dara Huang.
She said: "I'm so lucky, Eugenie is a great mum, everyone says: 'You must be so excited about your grandson' and I say: 'No, I'm so proud of my daughter.'
“She's a great mother and Beatrice is about to...
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