The film is widely considered Elia Kazan's answer to critics who condemned him for naming eight Communists in the film industry before the House Committee on Un-American Activities (HUAC) in 1952.

Playwright Arthur Miller originally wrote an earlier version of the script, titled The Hook, and Kazan agreed to direct it, but when Columbia's Harry Cohn demanded the antagonists be changed to Communists, Miller refused and the project collapsed; Kazan then replaced Miller with Budd Schulberg.

Screenwriter Budd Schulberg spent two years researching the story on the docks, sitting in on union meetings and visiting waterfront bars to observe the shapeup system, reporting his findings back to Kazan.

Lee J. Cobb's character Johnny Friendly was partly modeled on real-life mobster Johnny Dio, known for labor racketeering.

Marlon Brando initially turned down the role of Terry Malloy, after which Frank Sinatra, a Hoboken native, had a handshake deal to play the part and even attended a costume fitting.

To convince producer Sam Spiegel that a Brando-type actor could outperform Sinatra, Kazan had Karl Malden film a screen test of Actors Studio members Paul Newman and Joanne Woodward performing the Terry-Edie love scene, which persuaded Spiegel to reconsider Brando.

After Brando signed on within a week of the screen test, a furious Frank Sinatra demanded to be cast instead as Father Barry, but Spiegel gave that role to Karl Malden.

Eva Marie Saint made her film debut in this movie.

The film was shot over 36 days on location in Hoboken, New Jersey, using real docks, slum dwellings, bars, alleys, and rooftops.

The church exteriors were filmed at the historic Our Lady of Grace church, while interior scenes were shot at the Church of St. Peter and St. Paul on Hudson Street.

The score was composed by Leonard Bernstein, marking his only original film score not adapted from a stage production.

Some theater screenings caused such violent audience reactions that police had to be called in to keep order.

Director Orson Welles later criticized Elia Kazan, calling him a traitor and describing the film as 'a celebration of the informant' in reference to Kazan's HUAC testimony.

Budd Schulberg published a novel titled Waterfront the same year the film was released, in which Terry Malloy dies and the story focuses more on the priest character.

A 1984 Broadway stage adaptation by Schulberg used technical innovations like lasers and enveloping sound; a 1995 revival lasted only 8 performances and lost $2.6 million, a record for a non-musical on Broadway at the time.