This species is commonly found in shallow waters on and near coral reefs and occasionally in brackish waters. Juveniles are typically found in extremely shallow water (±15 to 100 cm) inside lagoons, often swimming along the shoreline; adults typically occur on shallow parts of the forereef, often moving over the reef crest and onto the reef flat at flood tide. Individual adults inhabit a relatively small home range of ±2.5 km2 and appear to reside close to their home reef but occasionally cross deepwater channels between adjacent reefs.
Along with the blacktip reef shark (C. melanopterus) and the whitetip reef shark (Triaenodon obesus), the grey reef shark is one of the three most common sharks inhabiting Indo-Pacific reefs. They actively expel most other shark species from favored habitats, even species larger in size. In areas where this species co-exists with the blacktip reef shark, the latter species occupies the shallow flats, while the former stays in deeper water. Areas with a high abundance of grey reef sharks tend to contain few sandbar sharks (C. plumbeus), and vice versa; this may be due to their similar diets causing competitive exclusion.
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Blacktip reef sharks are viviparous with a yolk-sac placenta, with a gestation period about 10 months and litter size of 2-4 pups. Size at birth ranges from 33-52 cm. Males mature at about eight years of age and 95-105 cm in length; females mature at about 9 years old and a length of 93-110 cm. Courtship features the one or more males following closely behind a female. Reproductive behavior includes distinct pairing with embrace where the male grasps the female’s pectoral fin between his teeth and mates belly to belly. There is one breeding season in the central and western Pacific, but two seasons in the Indian Ocean. Females rest for 8-14 month between pregnancies to rebuild their energy stores. Blacktip reef sharks are preyed upon by other sharks and large groupers. The is a socially complex species that performs a variety of group behaviors.
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.
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The snout is rather short, broad, and rounded, without prominent flaps of skin beside the nostrils. The eyes are large and circular, with nictitating membranes (protective third eyelids). There are 11–13 tooth rows in either half of both jaws. The teeth have broad bases, serrated edges, and narrow cusps; the front 2–4 teeth on each side are erect and the others increasingly oblique. The five pairs of gill slits are moderately long, with the third gill slit over the origin of the pectoral fins. The first dorsal fin is high and falcate (sickle-shaped). There is a low interdorsal ridge running behind it to the second dorsal fin, which is relatively large with a short free rear tip. The origin of the first dorsal fin lies over or slightly forward of the free rear tips of the pectoral fins, and that of the second dorsal fin lies over or slightly forward of the anal fin. The pectoral fins are long and narrow, tapering to a point. The dermal denticles are closely spaced and overlapping, each with five (sometimes seven in large individuals) horizontal low ridges leading to marginal teeth.
Cyanobacteria do not have skeletons and individuals are microscopic. Cyanobacteria can encourage the precipitation or accumulation of calcium carbonate to produce distinct sediment bodies in composition that have relief on the seafloor. Cyanobacterial mounds were most abundant before the evolution of shelly macroscopic organisms, but they still exist today (stromatolites are microbial mounds with a laminated internal structure). Bryozoans and crinoids, common contributors to marine sediments during the Mississippian (for example), produced a very different kind of mound. Bryozoans are small and the skeletons of crinoids disintegrate. However, bryozoan and crinoid meadows can persist over time and produce compositionally distinct bodies of sediment with depositional relief.