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Cameron's inspiration for the film was predicated on his fascination with shipwrecks; he wanted to convey the emotional message of the tragedy, and felt that a love story interspersed with the human loss would be essential to achieving this. Production on the film began in 1995, when Cameron shot footage of the actual Titanic wreck. The modern scenes were shot on board the Akademik Mstislav Keldysh, which Cameron had used as a base when filming the wreck. A reconstruction of the Titanic was built at Playas de Rosarito, Baja California, and scale models and computer-generated imagery were also used to recreate the sinking. The film was partially funded by Paramount Pictures and 20th Century Fox, and, at the time, was the most expensive film ever made, with an estimated budget of $200 million.

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Upon its release on December 19, 1997, the film achieved critical and commercial success. It equaled records with fourteen Academy Award nominations and eleven wins, receiving the prizes for Best Picture and Best Director. With a worldwide gross of over $1.8 billion, it was the first film to reach the billion dollar mark, remaining the highest-grossing film of all time for twelve years, until Cameron's next directorial effort, Avatar, surpassed it in 2010. Titanic is also ranked as the sixth best epic film of all time in AFI's 10 Top 10 by the American Film Institute. The film is due for theatrical re-release on April 6, 2012 in 3-D to commemorate the centenary of the Titanic setting sail.