Lundy was born in San Diego, California, the daughter of Jean (née McDonald) and Joel Lundy, a surgical oncologist. She grew up in Avon, Connecticut. Lundy has a younger sister by the name of Judy L. Lundy (born April 1972).
Lundy attended the Circle in the Square Theatre School. She graduated with a Bachelor of Arts in 1987 at the Tisch School of the Arts of New York University, where she majored in drama and performing arts. Lundy moved to Los Angeles in 1990.
Lundy made her film debut with Bright Lights, Big City (1988). That same year, she appeared in Caddyshack II (1988). Lundy also appeared opposite John Larroquette in the 1990 film, Madhouse.
From 1990 to 1991, Lundy appeared opposite Edward Woodward in the short-lived series, Over My Dead Body.
Lundy has also performed in theater. In 1994, Lundy portrayed Rita Altabel in an Off-Broadway production of Uncommon Women and Others.
From 1995 to 1996, Lundy played the titular role of Gloria in the short-lived sitcom, Hope and Gloria.
In 1996, she appeared opposite Tom Arnold in The Stupids.
Since 2015 Lundy has portrayed Inspector Amanda Wainwright in the CBS series, The Inspectors.
