Grey reef sharks feed mainly on bony fishes, with cephalopods such as squid and octopus being the second-most important food group, and crustaceans such as crabs and lobsters making up the remainder. The larger sharks take a greater proportion of cephalopods.[20] These sharks hunt individually or in groups, and have been known to pin schools of fish against the outer walls of coral reefs for feeding.[14] Hunting groups of up to 700 grey reef sharks have been observed at Fakarava atoll in French Polynesia.[21][22] They excel at capturing fish swimming in the open, and they complement hunting whitetip reef sharks, which are more adept at capturing fish inside caves and crevices.[4] Their sense of smell is extremely acute, being capable of detecting one part tuna extract in 10 billion parts of sea water.[13] In the presence of a large quantity of food, grey reef sharks may be roused into a feeding frenzy; in one documented frenzy caused by an underwater explosion that killed several snappers, one of the sharks involved was attacked and consumed by the others.[23]
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.

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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.
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