1.  groovy(s = adj.all) bang-up, bully, corking, cracking, dandy, great, keen, neat, nifty, not bad, peachy, slap-up, smashing, swell - very good; "he did a bully job"; "a neat sports car"; "had a great time at the party"; "you look simply smashing"

2.  groovy(s = adj.all) swagger - (British informal) very chic; "groovy clothes"

1.  Very pleasant or very enjoyable; marvelous; wonderful; excellent; -- expressing strong approval, usually of enjoyable experiences. [WordNet 1.5]

2.  Very chic; as, groovy clothes. [WordNet 1.5]

3.  same as hip. [PJC]

groovy, adj. (groovier, grooviest)
1 sl. fashionable and exciting; enjoyable, excellent.
2 of or like a groove.

Derivative:
groovily adv. grooviness n.