Cameron was born in 1954 in Kapuskasing, Ontario, Canada, the son of Shirley (nee Lowe), an artist and nurse, and Phillip Cameron, an electrical engineer. His paternal great-great-great-grandfather emigrated from Balquhidder, Scotland, in 1825. Cameron grew up in Chippawa, Ontario, and attended Stamford Collegiate School in Niagara Falls, Ontario. His family moved to Brea, California in 1971, when Cameron was 17 years old.

In June 2005, Cameron was announced to be working on a project tentatively titled "Project 880" (now known to be Avatar) in parallel with another project, Alita: Battle Angel (an adaptation of the manga series Battle Angel Alita). Both movies were to be shot in 3D. By December, Cameron stated that he wanted to film Battle Angel first, followed by Avatar. However, in February 2006, he switched goals for the two film projects and decided to film Avatar first. He mentioned that if both films were successful, he would be interested in seeing a trilogy being made for both. Alita: Battle Angel eventually began production in 2016 with Cameron writing and producing and Robert Rodriguez directing.  Avatar had an estimated budget of over $300 million and was released on December 18, 2009. This marked his first feature film since 1997's Titanic. It is composed almost entirely of computer-generated animation, using a more-advanced version of the "performance capture" technique used by director Robert Zemeckis in The Polar Express. James Cameron had written an 80-page scriptment for Avatar in 1995 and announced in 1996 that he would make the film after completing Titanic. In December 2006, Cameron explained that the delay in producing the film since the 1990s had been to wait until the technology necessary to create his project was advanced enough, since at the time no studio would finance for the development of the visual effects. The film was originally scheduled to be released in May 2009 but was pushed back to December 2009 to allow more time for post-production on the complex CGI and to give more time for theatres worldwide to install 3D projectors. Cameron originally intended Avatar to be 3D-only.  Avatar broke several box office records during its initial theatrical run. It grossed $749.7 million in the United States and Canada and more than $2.74 billion worldwide, becoming the highest-grossing film of all time in the United States and Canada, surpassing Cameron's Titanic. Avatar also became the first movie to ever earn more than $2 billion worldwide. Including revenue from the re-release of Avatar featuring extended footage, it grossed $760.5 million in the United States and Canada and more than $2.78 billion worldwide. It was nominated for nine Academy Awards, including Best Picture and Best Director, and won three for Best Art Direction, Best Cinematography and Best Visual Effects.  Avatar's success made Cameron the highest earner in Hollywood for 2010, netting him $257 million as reported by Vanity Fair.  Disney announced in September 2011 that it would adapt James Cameron's film Avatar into Pandora-The World of Avatar, a themed area at Disney's Animal Kingdom in Lake Buena Vista, Florida.

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