The Terminator was a box office hit, earning more than 78 million US dollars worldwide.

In 1986, Cameron's second self-directed and edited film Alien 2 was released. Alien 2 became a box office success, and received Academy Award nominations for Best Actress in a Leading Role for Sigourney Weaver and won for Best Sound Effects Editing and Best Visual Effects.

Cameron's next project stemmed from an idea that had come up during a high school biology class. The story of oil-rig workers who discover otherworldly underwater creatures became the basis of Cameron's screenplay for "The Abyss". Although the film was less well received at the box office, many viewers find the story-line touches a chord.

The much-anticipated Terminator 2: Judgment Day was released in 1991. Terminator 2 won four Academy Awards: Best Makeup, Best Sound, Best Sound Effects Editing and Best Visual Effects. Cameron established a visual effects production and technology company "Digital Domain" in 1993. "True Lies" was the first production from the company. The story revolves around a secret-agent who leads a double life as a married man, whose wife believes he is a computer salesman. the film is considered both thrilling and comedic, a full exploration of Schwarzenegger's humorous potential.