Elizabeth Maria Peña was born on September 23, 1959, in Elizabeth, New Jersey, to Cuban immigrant parents Mario Peña, a playwright, actor, and director, and Estella Margarita Peña, a producer. Her family moved to Cuba when she was less than a year old, and she returned to the United States at the age of nine.

Growing up in New York City, she was surrounded by the arts, and her parents founded the Latin American Theatre Ensemble. She graduated from the High School of Performing Arts in 1977.

Elizabeth Pena made her film debut in the Spanish-speaking feature "El Super" in 1979, which was about Cuban refugees. She continued to play independent and rebellious characters in films such as "Down and Out in Beverly Hills" (1986), "La Bamba" (1987), "Jacob's Ladder" (1990), "Rush Hour" (1998), and "The Incredibles" (2004).

She also starred in the sitcom "I Married Dora" (1987-1988) and the critically acclaimed but short-lived television series "Shannon's Deal" (1989-1991).

She won several awards for her work, including the 1996 Independent Spirit Award for Best Supporting Female for her role in "Lone Star" and a Bravo Award for Outstanding Actress in a Feature Film. She was also a founding member of the Hispanic Organization of Latin Actors (HOLA) and the fourth Latina to join the Directors' Guild of America.

Elizabeth Pena married twice, first to William Kibler in 1988 and later to Hans Rolla in 1994. She had two children, Fiona and Kaelan Rolla. Elizabeth passed away on October 14, 2014, at the age of 55 due to cirrhosis of the liver.