Ship breaking or ship demolition is a type of ship disposal involving the breaking up of ships for scrap recycling. Other names given to the activity of breaking ship into smaller pieces to recycle various materials include ship dismantling, ship recycling, ship disposal, ship de-commissioning etc. Most ships have a lifespan of a few decades before there is so much wear that refitting and repair become uneconomical. Ship breaking allows materials from the ship, especially steel, to be recycled. Equipment on board the vessel can also be reused.

As an alternative to ship breaking, ships are also sunk to make artificial reefs after being cleaned up. Other possibilities are floating (or land-based) storage.

Until the late 20th century, ship breaking took place in port cities of industrialized countries such as the United Kingdom and the United States. Today, ships are broken down mostly in developing countries, due to lower labor costs and less stringent environmental regulations on the disposal of toxic substances such as lead paint and asbestos. Those "breakers" that still remain in the United States work primarily on government surplus vessels. Some breakers operate in Dubai, United Arab Emirates, and specialize in tankers. China used to be an important player in ship breaking in the 1990s.^{[citation needed]}

In addition to steel and other useful materials, ships (particularly older vessels) can contain many substances that are banned or considered dangerous in developed countries.^{[citation needed]} Asbestos^[១] and polychlorinated biphenyls (PCBs) are typical examples. Asbestos was used heavily in ship construction until it was finally banned in most of the developed world in the mid-1980s. Currently, the costs associated with removing asbestos, along with the potentially expensive insurance and health risks, have meant that ship breaking in most developed countries is no longer economically viable. Removing the metal for scrap can potentially cost more than the value of the scrap metal itself. In the developing world, however, shipyards can operate without the risk of personal injury lawsuits or workers' health claims, meaning many of these shipyards may operate with high health risks. Protective equipment is sometimes absent or inadequate. Dangerous vapors and fumes from burning materials can be inhaled, and dusty asbestos-laden areas are commonplace.^[១] In the Chittagong Ship Breaking yard, a local watchdog group claims that one worker dies a week on average.^[២] According to the Institute for Global Labour and Human Rights, workers who attempt to unionize are terminated and then blacklisted.^[៣]