Murphy was born on March 9, 1955 in Washington state.
With her second novel, The Falling Woman (1986), she won the Nebula Award, and another Nebula Award in the same year for her novelette, "Rachel in Love." Her short story collection, Points of Departure (1990) won the Philip K. Dick Award, and her 1990 novella, Bones, won the World Fantasy Award in 1991.
Murphy has used the ideas of the absurdist pseudophilosophy pataphysics in some of her writings. Along with Lisa Goldstein and Michaela Roessner, she has formed The Brazen Hussies to promote their work. Together with Karen Joy Fowler, Murphy co-founded the James Tiptree, Jr. Award in 1991.
