The Magpies' manager has revealed that the striker was recommended to him by former Watford boss Malky Mackay and the foormer Middlesbrough man could return to the North East
Graham joined Brendan Rodgers' newly-promoted Swans for £3.5 million in the summer and has bagged 10 Premier League goals so far this season.
The Gateshead-born striker was recommended to Pardew by former Watford manager, Malky Mackay, but the Magpies boss did not feel he had enough knowledge of Graham to justify a move.
"I wouldn't say he got away," Pardew told the Shields Gazette. "But I knew about him because Malky had tipped me off.
"We just didn’t have enough on him. We couldn't do enough work in terms of whether he was going to fit the bill for us."
Newcastle face Swansea on Friday at the Liberty Stadium and Pardew identified Graham as the home side's key man.
"He’s had a marvellous season – he's done really well," the former West Ham boss added. "We will have to be on our guard against him, because he's their out-and-out finisher.
"All that clever stuff they do when they keep the ball all ends with him scoring. So if you stop him scoring, it makes it difficult for them to score."
Graham, like Pardew, arrived in the professional game via non-league football and the 50-year-old hinted that the former Chester-le-Street Town forward could return to his North East roots in the future.
"He's come from a similar route as me from non-league football," Pardew explained. "If you've done that, you appreciate this level.
"Who knows? There might be a day when he comes back to the North East."