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Grey reef sharks are often curious about divers when they first enter the water and may approach quite closely, though they lose interest on repeat dives. They can become dangerous in the presence of food, and tend to be more aggressive if encountered in open water rather than on the reef. There have been several known attacks on spearfishers, possibly by mistake, when the shark struck at the speared fish close to the diver. This species will also attack if pursued or cornered, and divers should immediately retreat (slowly and always facing the shark) if it begins to perform a threat display. Photographing the display should not be attempted, as the flash from a camera is known to have incited at least one attack. Although of modest size, they are capable of inflicting significant damage: during one study of the threat display, a grey reef shark attacked the researchers' submersible multiple times, leaving tooth marks in the plastic windows and biting off one of the propellers. The shark consistently launched its attacks from a distance of 6 m (20 ft), which it was able to cover in a third of a second. As of 2008, the International Shark Attack File listed seven unprovoked and six provoked attacks (none of them fatal) attributable to this species.
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.
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Although there are no active reef shark fisheries in the US Pacific, the reef sharks' disappearance could be caused by recreational fishing or illegal shark finning, which, combined, kill 26 million to 73 million sharks each year. Another possible explanation is that the reef sharks are starving. Their food sources, including coral reef fishes, are decreasing in number because of habitat destruction and human exploitation, and could be taking the sharks with them.
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.
Although still abundant at Cocos Island and other relatively pristine sites, grey reef sharks are susceptible to localized depletion due to their slow reproductive rate, specific habitat requirements, and tendency to stay within a certain area. The IUCN has assessed the grey reef shark as Near Threatened; this shark is taken by multispecies fisheries in many parts of its range and used for various products such as shark fin soup and fishmeal. Another threat is the continuing degradation of coral reefs from human development. There is evidence of substantial declines in some populations. Anderson et al. (1998) reported, in the Chagos Archipelago, grey reef shark numbers in 1996 had fallen to 14% of 1970s levels. Robbins et al. (2006) found grey reef shark populations in Great Barrier Reef fishing zones had declined by 97% compared to no-entry zones (boats are not allowed). In addition, no-take zones (boats are allowed but fishing is prohibited) had the same levels of depletion as fishing zones, illustrating the severe effect of poaching. Projections suggested the shark population would fall to 0.1% of pre-exploitation levels within 20 years without additional conservation measures. One possible avenue for conservation is ecotourism, as grey reef sharks are suitable for shark-watching ventures, and profitable diving sites now enjoy protection in many countries, such as the Maldives.
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.
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During mating, the male grey reef shark will bite at the female's body or fins to hold onto her for copulation. Like other requiem sharks, it is viviparous: once the developing embryos exhaust their supply of yolk, the yolk sac develops into a placental connection that sustains them to term. Each female has a single functional ovary (on the right side) and two functional uteruses. One to four pups (six in Hawaii) are born every other year; the number of young increases with female size. Estimates of the gestation period range from 9 to 14 months. Parturition is thought to take place from July to August in the Southern Hemisphere and from March to July in the Northern Hemisphere. However, females with "full-term embryos" have also been reported in the fall off Enewetak. The newborns measure 45–60 cm (18–24 in) long. Sexual maturation occurs at around seven years of age, when the males are 1.3–1.5 m (4.3–4.9 ft) long and females are 1.2–1.4 m (3.9–4.6 ft) long. Females on the Great Barrier Reef mature at 11 years of age, later than at other locations, and at a slightly larger size. The lifespan is at least 25 years.
Grey reef sharks are prey for larger sharks, such as the silvertip shark. At Rangiroa Atoll in French Polynesia, great hammerheads (Sphyrna mokarran) feed opportunistically on grey reef sharks that are exhausted from pursuing mates. Known parasites of this species include the nematode Huffmanela lata and several copepod species that attach to the sharks' skin, and juvenile stages of the isopods Gnathia trimaculata and G. grandilaris that attach to the gill filaments and septa (the dividers between each gill).