Michael Murphy was born in Los Angeles, California, to Georgia Arlyn (née Money),a teacher, and Bearl Branton Murphy, a salesman. After serving in the Marine Corps, Murphy attended the University of Arizona and later earned his California teaching credential from U.C.L.A. He taught high school English and drama in Los Angeles from 1962 to 1964.
Murphy's most notable role was as Woody Allen's best friend, Yale, in Allen's 1979 film Manhattan. The two had previously worked together in Martin Ritt's 1976 film The Front, and they had become close friends. Despite Murphy's excellent performance in Manhattan, Allen has not used him in another film.
Murphy's career as a supporting actor began in 1962 and has continued for over five decades, with notable roles in films such as Paul Mazursky's An Unmarried Woman (1978),Peter Weir's The Year of Living Dangerously (1982),and Oliver Stone's Salvador (1986). He has also worked with prominent directors such as Elia Kazan, Tim Burton, and Paul Thomas Anderson.
Murphy is perhaps best known for his long collaboration with director Robert Altman, which began in the early 1960s. Altman cast Murphy in his first film, the television series Combat! (1962),without an audition. Murphy has appeared in seven theatrical films directed by Altman, including Countdown (1967),M*A*S*H (1970),and Nashville (1975).
Murphy played the title role of Michigan Congressman Jack Tanner in Altman's HBO series Tanner '88 (1988),which was scripted by Garry Trudeau. The series followed Tanner's campaign for the Democratic presidential nomination in 1988 and was a critical and commercial success. Murphy reprised his role as Tanner in the 2004 cable mini-series Tanner on Tanner.
In addition to his work in film and television, Murphy has also appeared in several stage productions, including a 2004 production of the play The Caine Mutiny Court-Martial.