Celeste Holm was born on April 29, 1917, in New York City and grew up in Manhattan as an only child. Her mother, Jean Parke, was a portrait artist and author, while her father, Theodor Holm, was a Norwegian businessman.

Due to her parents' occupations, she traveled frequently during her youth, attending schools in the Netherlands, France, and the United States. She began high school at the University School for Girls in Chicago and later transferred to the Francis W. Parker School, where she performed in many school stage productions and graduated in 1935.

Celeste Holm then studied drama at the University of Chicago before embarking on her stage career in the late 1930s. Her first professional theatrical role was in a production of Hamlet starring Leslie Howard, and she made her Broadway debut in a small part in Gloriana (1938).

Her first major role on Broadway came in William Saroyan's revival of The Time of Your Life (1940) as Mary L., alongside Gene Kelly. However, it was her role as Ado Annie in the premiere production of Rodgers and Hammerstein's Oklahoma! in 1943 that brought her widespread recognition.

She originated the role of the boy-crazy Ado Annie, singing the memorable song "I Cain't Say No."

After her success in Oklahoma!, she was signed by 20th Century Fox to a movie contract in 1946. She made her film debut that same year in Three Little Girls in Blue, where she made a striking entrance in a Technicolor red dress singing "Always a Lady."

For her role in Gentleman's Agreement (1947), she won an Academy Award and a Golden Globe for Best Supporting Actress. She was also nominated for her roles in Come to the Stable (1949) and All About Eve (1950).

Her most successful films during this period were the comedy The Tender Trap (1955) and the musical High Society (1956), both of which co-starred Frank Sinatra.

Celeste Holm appeared on television in her own series, Honestly, Celeste! (1954) and as a panelist on Who Pays? (1959). She also returned to television in the 1970s, playing the chaperone to the president's daughter on Nancy (1970).

Celeste Holm passed away on July 15, 2012, at the age of 95 from a heart attack.