Frances Louise McDormand was born on June 23, 1957, in Gibson City, Illinois. She was adopted by Canadian-born parents Noreen Eloise (Nickleson), a nurse from Ontario, and Rev. Vernon Weir McDormand, a Disciples of Christ minister from Nova Scotia, who raised her in the suburbs of Pittsburgh. She earned a BA in theater from Bethany College in 1979 and an MFA from Yale University in 1982. Her career after graduation began onstage, and she has retained her association with the theater throughout her career. She soon obtained prominent roles in movies as well, first starring in Blood Simple (1984), in which she worked with filmmaker Joel Coen, whom she married that year. She frequently collaborated with Coen and his brother, Ethan Coen, in their films.

McDormand's skilled and versatile acting has been recognized by both the critics and the Academy, and in addition to many critics' awards, she has been nominated for an Academy Award six times - Supporting in Mississippi Burning (1988), Almost Famous (2000), and North Country (2005), and Lead in Fargo (1996), Three Billboards Outside Ebbing, Missouri (2017), and Nomadland (2020), winning the Oscar for the latter three. She also won a Best Picture Oscar as co-producer of "Nomadland." Keenly intelligent and possessed of a sharp wit, McDormand is the antithesis of the Hollywood starlet - rather than making every role about Frances McDormand, she dissolves into the characters she plays. Accordingly, she has expressed some reservations about the iconic recognition she has gained from her touching and amusing portrayal of Police Chief Marge Gunderson, the quintessential Minnesota Scandinavian, in Fargo (1996).

McDormand and Coen adopted a son, Pedro McDormand Coen, who was born in Paraguay, in 1994. They live in New York.