Generally a coastal, shallow-water species, grey reef sharks are mostly found in depths of less than 60 m (200 ft).[11] However, they have been known to dive to 1,000 m (3,300 ft).[2] They are found over continental and insular shelves, preferring the leeward (away from the direction of the current) sides of coral reefs with clear water and rugged topography. They are frequently found near the drop-offs at the outer edges of the reef, particularly near reef channels with strong currents,[12] and less commonly within lagoons. On occasion, this shark may venture several kilometers out into the open ocean.[4][11]

There is a variety of biotic reef types, including oyster reefs and sponge reefs, but the most massive and widely distributed are tropical coral reefs. Although corals are major contributors to the framework and bulk material comprising a coral reef; the organisms most responsible for reef growth against the constant assault from ocean waves are calcareous algae, especially, although not entirely, coralline algae.