The Pounds settled in Paris in January 1921 in an inexpensive apartment at 70 bis, rue Notre Dame des Champs. He became friendly with Marcel Duchamp, Tristan Tzara, Fernand Léger and others of the Dada and Surrealist movements, as well as Basil Bunting, Ernest Hemingway and his wife Hadley. He spent most of his time building furniture for his apartment and bookshelves for the bookstore Shakespeare and Company, and in 1921 the volume Poems 1918–1921 was published. In 1922 Eliot sent him the manuscript of The Waste Land, then arrived in Paris to edit it with Pound, who blue-inked the manuscript with comments like "make up yr. mind ..." and "georgian". Eliot wrote: "I should like to think that the manuscript, with the suppressed passages, had disappeared irrecoverably; yet, on the other hand, I should wish the blue pencilling on it to be preserved as irrefutable evidence of Pound's critical genius."
In 1924 Pound secured funding for Ford Madox Ford's The Transatlantic Review from American attorney John Quinn. The Review published works by Pound, Ernest Hemingway and Gertrude Stein, as well as extracts from Joyce's Finnegans Wake, before the money ran out in 1925. It also published several Pound music reviews, later collected into Antheil and the Treatise on Harmony.
Hemingway asked Pound to blue-ink his short stories. Although Hemingway was 14 years younger, the two forged what would become a lifelong relationship of mutual respect and friendship, living on the same street for a time, and touring Italy together in 1923. "They liked each other personally, shared the same aesthetic aims, and admired each other's work", writes Hemingway biographer Jeffrey Meyers, with Hemingway assuming the status of pupil to Pound's teaching. Pound introduced Hemingway to Lewis, Ford, and Joyce, while Hemingway in turn tried to teach Pound to box, but as he told Sherwood Anderson, "[Ezra] habitually leads with his chin and has the general grace of a crayfish or crawfish".
Pound was 36 when he met the 26-year-old American violinist Olga Rudge in Paris in the fall of 1922, beginning a love affair that lasted 50 years. Biographer John Tytell believes Pound had always felt that his creativity and ability to seduce women were linked, something Dorothy turned a blind eye to over the years. He complained shortly after arriving in Paris that he had been there for three months without having managed to find a mistress. He was introduced to Olga at a musical salon hosted by American heiress Natalie Barney in her home at 20 Rue Jacob, near the Boulevard Saint-Germain. The two moved in different social circles: Olga was the daughter of a wealthy Youngstown, Ohio, steel family, living in her mother's Parisian apartment on the Right Bank, socializing with aristocrats, while his friends were mostly impoverished writers of the Left Bank. The two spent the following summer in the south of France, where he worked with George Antheil to apply the concept of Vorticism to music, and managed to write two operas, including Le Testament de Villon. He wrote pieces for solo violin, which Olga performed.