Generally a coastal, shallow-water species, grey reef sharks are mostly found in depths of less than 60 m (200 ft). However, they have been known to dive to 1,000 m (3,300 ft). 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, and less commonly within lagoons. On occasion, this shark may venture several kilometers out into the open ocean.
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Ancient reefs buried within stratigraphic sections are of considerable interest to geologists because they provide paleo-environmental information about the location in Earth's history. In addition, reef structures within a sequence of sedimentary rocks provide a discontinuity which may serve as a trap or conduit for fossil fuels or mineralizing fluids to form petroleum or ore deposits.