Marking the 30-year anniversary of the film for which he won the best actor Oscar, Douglas told the U.K.'s Sunday People Stone had initially slammed his performance.
After Douglas had filmed the famous scene where his corporate raider character Gordon Gekko brags about his fortune to Charlie Sheen's young stockbroker Bud Fox in a limo, Douglas said Stone had a beef.
"Oliver said, ''How are you feeling?' I said, 'I am feeling good.' He said, ''Michael, are you doing drugs?' I said 'No.'. He said, 'Because you look like you have never acted before in your life.'
"I say, 'Oliver, I thought it was pretty good.' Oliver wanted just a little bit more anger. And I went to town after that, I worked my ass off," Douglas, now 72, recalled.
The actor said he was so upset at Stone's criticism that he pushed himself harder to make Gekko meaner—and it worked, as the "greed is good" character became iconic.
Douglas won the Best Actor Oscar in 1988, beating out Jack Nicholson, William Hurt and Robin Williams.
Now, Douglas is glad he worked with Vietnam veteran Stone and told Sunday People, "You look back at Oliver Stones's career - Jimmy Woods in El Salvador, Charlie Sheen in Platoon, Tom Cruise in Born On The Fourth Of July, Kevin Costner in JFK, Val Kilmer in The Doors - and every actor has probably given their best performance with Oliver Stone.
"Because, whether it is his Vietnam mentality, he wants you in the trenches with him.
"He is not a patriarch figure like a lot of directors. He challenges you and so I am deeply grateful for Oliver for the opportunity and it helped me achieve what he wanted to see."
Douglas, who has battled throat cancer, also updated fans on his father Kirk, who is now an incredible 100 years old.
When the younger Douglas is in Los Angeles, he stays at his dad's guest house above their Beverly Hills mansion.
He said Kirk "became a better man" after a stroke, and almost dying in a helicopter crash 30 years ago.
Michael is still married to actress Catherine Zeta-Jones, 47, after the two weathered marital problems. They were seen sharing a vacation in Mexico last year.
And his recovering addict son, Cameron, 38, was released from prison last year after serving time for drug offenses, as Radar has reported.
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