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From The Collaborative International Dictionary of English v.0.48:
groovy \groov"y\ (gr[=oo]"v[y^]), a. Very pleasant or very enjoyable; marvelous; wonderful; excellent; -- expressing strong approval, usually of enjoyable experiences. [informal, 1960's] [WordNet sense 1] Syn: bang-up, bully, cool, corking, cracking, dandy, far-out, great, keen, neat, nifty, not bad(predicate), out-of-sight, outtasight, peachy, psychedelic, slap-up, swell, smashing. [WordNet 1.5 +PJC] 2. Very chic; as, groovy clothes. [British informal] [WordNet sense 2] Syn: swagger. [WordNet 1.5] 3. same as hip. [informal, 1960's] Syn: hip, with it. [PJC]