There is little evidence of territoriality in the grey reef shark; individuals will tolerate others of their species entering and feeding within their home ranges. Off Hawaii, individuals may stay around the same part of the reef for up to three years, while at Rangiroa, they regularly shift their locations by up to 15 km (9.3 mi). Individual grey reef sharks at Enewetak become highly aggressive at specific locations, suggesting they may exhibit dominant behavior over other sharks in their home areas.
Grey reef sharks are fast-swimming, agile predators that feed primarily on free-swimming bony fishes and cephalopods. Their aggressive demeanor enables them to dominate many other shark species on the reef, despite their moderate size. Many grey reef sharks have a home range on a specific area of the reef, to which they continually return. However, they are social rather than territorial. During the day, these sharks often form groups of five to 20 individuals near coral reef drop-offs, splitting up in the evening as the sharks begin to hunt. Adult females also form groups in very shallow water, where the higher water temperature may accelerate their growth or that of their unborn young. Like other members of its family, the grey reef shark is viviparous, meaning the mother nourishes her embryos through a placental connection. Litters of one to six pups are born every other year.
Adults begin to reproduce once they attain a size of 2 to 3 meters (female) or 1.5 to 1.7 meters (male). They reproduce once per year but childbirth is biennial since the females get pregnant every other year. The reproduction method is Viviparous which means the pups develop inside of the mother. There is evidence that the reproduction method is aggressive and violent since many female Caribbean Reef Sharks have been found with deep wounds on their sides during mating season. These wounds are caused by bites and heal in time leaving large and highly visible scars.
A profitable ecotourism industry has arisen around this species involving organized "shark feeds", in which groups of reef sharks are attracted to divers using bait. Some US$6,000,000 is spent annually on shark viewing in the Bahamas, where at some sites a single living Caribbean reef shark has a value between US$13,000 and US$40,000 (compared to a one-time value of US$50–60 for a dead shark). This practice has drawn controversy, as opponents argue that the sharks may learn to associate humans with food, increasing the chances of a shark attack, and that the removal of reef fishes for bait may damage the local ecosystem. Conversely, proponents maintain that shark feeds contribute to conservation by incentivizing the protection of sharks and educating people about them. Thus far, there has been little evidence that shark feeds have increased the risk of attack in the surrounding area. Shark feeding has been outlawed off the coast of Florida, but continues at other locations in the Caribbean.
Based on morphological similarities, Jack Garrick in 1982 grouped this species with the bignose shark (C. altimus) and the sandbar shark (C. plumbeus), while Leonard Compagno in 1988 placed it as the sister species of the grey reef shark (C. amblyrhynchos). A phylogenetic analysis based on allozyme data, published by Gavin Naylor in 1992, indicated that the Caribbean reef shark is the sister taxon to a clade formed by the Galapagos shark (C. galapagensis), dusky shark (C. obscurus), oceanic whitetip shark (C. longimanus), and the blue shark (Prionace glauca). However, more work is required to fully resolve the interrelationships within Carcharhinus.
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