Murphy, a Democrat seeking reelection this year, said the order will be prospective and affect only new contracts, extensions or renewals.
He said he couldn't specify how many state contractors would be affected but estimated it would be in the "hundreds or thousands."
"We must ensure that everyone providing service to the people of New Jersey – whether they are direct or contracted employees – is being held to the same public health and safety standards," Murphy said.
The order mirrors other executive orders Murphy's signed requiring shots or tests for state workers and school employees.
The requirement comes just days after a deadline for school and state workers to be vaccinated or undergo coronavirus testing kicked in, but Murphy said he didn't have details about how many chose which option.