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1.
The ties that bind are stronger when it comes to family than people outside the family (e.g., friends, colleagues, strangers, etc.).
Blood = family (though not necessarily related by blood, such as husband and wife)
Water = non-family
1) "Don't trust anyone outside the family. Blood is thicker than water. Never forget that."

2) A man wakes up from a coma to find all of his family around him. Man: "Where are all my friends? They said they would be there for me no matter what!"
Nurse: "I suppose it's true what they say: blood is thicker than water."

3) "Why did this man's friends show up to his funeral, yet none of his family did?"
"Well... I guess water is thicker than blood!" (the opposite can also be used for dramatic effect)
by Skeptikai March 23, 2013

Words related to Blood is thicker than water

blood family friends strangers thicker water
 
2.
it's suppose to mean family before anything else; however many people say the phrase and don't really mean it since they would pick their friends over their sister/brother or cousins.
person 1: hey cuz wanna go to the movies?

person 2: um........ u gon on without me i wanna chill with my friends

second example

person 1: hey cuz i really don't like one of your freinds, she was being a bitch

person 2: omg how could u say that about my friend, she is such a goood person, u probaly pissed her off or something.
by ********************* April 01, 2005