Beatrice "Bebe" Neuwirth was born in Newark and raised in Princeton, New Jersey, and was one of those kids who practically came out of the womb with dance shoes on her feet. She began formal dance classes at the age of 5, and performed with the local ballet while she was in high school. After high school, Neuwirth attended the prestigious Julliard School of the Performing Arts (as did fellow Cheers alum Kelsey Grammer) where she studied dance. She made her professional debut in 1980, while she was still in school, when she was cast as Sheila in a traveling production of A Chorus Line. Neuwirth subsequently dropped out to pursue a career on Broadway. In 1982 she was cast in Dancin' , which was directed and choreographed by famed choreographer Bob Fosse. Neuwirth worked with Fosse again in the 1986 production of Sweet Charity, for which she won her first Tony Award. In that same year, she was cast in her first major television role as the icy intellectual love interest for Fraiser Crane, Dr.Lilith Sternin, on NBC's Cheers.

Neuwirth won two Emmys for her work on the show, and her time on Cheers paved the way for her to make the transition to films. Her movie debut was in Say Anything (1989), and additional film credits include Bugsy (1991) and Malice (1993). In 1992 Neuwirth left Cheers to pursue film projects full time, appearing in Jumanji (1995), Celebrity (1998), Summer of Sam (1999), Liberty Heights (1999), Tadpole (2002), How to Lose a Guy in 10 Days (2003), Le Divorce (2003) and The Big Bounce (2004). Neuwirth often appeared on Frasier, reprising her role as Fraiser's ex-wife. In 1997 she returned to Broadway and won a Tony for Best Actress for her work in the revival of Chicago. Neuwirth returned to TV after leaving Chicago and had a recurring role as A.D.A Tracey Kibre on the NBC series Law and Order: Special Victims Unit, a role she resumed on spin-off Law and Order :Trial by Jury.

Twice married, Neuwirth and her husband, Michael Danek, reside in New York City.