The 53-year-old was picked up after complaints that he was loud and annoying in the area around the Tullamore Court Hotel in Co. Offaly on Saturday afternoon.
He was charged under Sections 4 and 6 of the Public Order Act. He was bailed and will appear at Tullamore district court on 17 July.
McGrath is widely considered one of Ireland's greatest ever players and was part of Jack Charlton's teams that played in the 1990 and 1994 World Cups and the 1988 European Championships.
He won 83 caps in total and was named PFA Player of the Year in 1993 while at Aston Villa.