Like many sharks, the Caribbean reef shark mainly eats bony fishes. The shark uses six keen senses to locate its prey: olfactory, visual, tactile (including water vibration sensitivity through a lateralis canal system), auditory, gustatory, and electric reception. The Caribbean reef shark is especially adapted to detecting low frequency sounds (indicative of a struggling fish nearby).
Reproduction is viviparous; once the developing embryos exhaust their supply of yolk, the yolk sac develops into a placental connection through which they receive nourishment from their mother. Mating is apparently an aggressive affair, as females are often found with biting scars and wounds on their sides.[4] At the Fernando de Noronha Archipelago and Atol das Rocas off Brazil, parturition takes place at the end of the dry season from February to April, while at other locations in the Southern Hemisphere, females give birth during the Amazon summer in November and December.[4][12] The average litter size is four to six, with a gestation period of one year. Females become pregnant every other year.[8] The newborns measure no more than 74 cm (29 in) long; males mature sexually at 1.5–1.7 m (59–67 in) long and females at 2–3 m (79–118 in).[4]
Grey reef sharks are active at all times of the day, with activity levels peaking at night.[4] At Rangiroa, groups of around 30 sharks spend the day together in a small part of their collective home range, dispersing at night into shallower water to forage for food. Their home range is about 0.8 km2 (0.31 sq mi).[25] At Enewetak in the Marshall Islands, grey reef sharks from different parts of the reef exhibit different social and ranging behaviors. Sharks on the outer ocean reefs tend to be nomadic, swimming long distances along the reef, while those around lagoon reefs and underwater pinnacles stay within defined daytime and night-time home ranges.[26] Where there are strong tidal currents, grey reef sharks move against the water: towards the shore with the ebbing tide and back out to sea with the rising tide. This may allow them to better detect the scent of their prey, or afford them the cover of turbid water in which to hunt.[25]
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.[3] 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.[4] 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.[11]

One useful definition distinguishes reefs from mounds as follows: Both are considered to be varieties of organosedimentary buildups – sedimentary features, built by the interaction of organisms and their environment, that have synoptic relief and whose biotic composition differs from that found on and beneath the surrounding sea floor. Reefs are held up by a macroscopic skeletal framework. Coral reefs are an excellent example of this kind. Corals and calcareous algae grow on top of one another and form a three-dimensional framework that is modified in various ways by other organisms and inorganic processes. By contrast, mounds lack a macroscopic skeletal framework (see stromatolite). Mounds are built by microorganisms or by organisms that don't grow a skeletal framework. A microbial mound might be built exclusively or primarily by cyanobacteria. Excellent examples of biostromes formed by cyanobacteria occur in the Great Salt Lake in Utah, and in Shark Bay on the coast of Western Australia.