Murphy was born on April 3, 1961, in Brooklyn, N.Y. His father, a policeman and amateur comedian, died when Murphy was 8 years old; his mother remarried a year later. As a youngster Murphy did imitations of cartoon characters and celebrities, and he began performing at comedy clubs as a teenager. The owners of the Comic Strip, a famous Manhattan club, later became his managers.

When the television show Saturday Night Live was looking for an African American comedian, 19-year-old Murphy auditioned. Between 1980 and 1984 he developed a host of memorable characters for the program, including Little Richard Simmons (a cross between musician Little Richard and Richard Simmons), Mr. Robinson (a spoof of children's television personality Mister Rogers), grumpy Gumby, and an adult version of Our Gang's Buckwheat. Some critics found his characters stereotypical and demeaning, while others hailed them as effective social satire.

Like many members of the Saturday Night Live cast, Murphy made the jump to motion pictures. In the action comedy 48 Hours, Murphy played a thief released from prison to help a policeman (Nick Nolte) track down some killers; he reprised the role of brash Reggie Hammond for the film's 1990 sequel. Murphy developed another slick character, Axel Foley, for Beverly Hills Cop and its two sequels (1987 and 1994). His other 1980s films include Coming to America (1988) and Harlem Nights (1989). He also appeared in Raw (1987), a motion picture of two of his comedy concerts, and established his own entertainment production companies.

Although Murphy made many films in the 1990s, including The Distinguished Gentleman (1992) and Vampire in Brooklyn (1995), it was his portrayal of wacky but likable characters in The Nutty Professor and Doctor Dolittle that brought the most notice. After being known for much of his career for his use of obscenities, Murphy appealed to a family audience in these films. He also provided the voice of the sidekick Mushu in Disney's Mulan (1998).