Meme McDonald was born in south-west Queensland. She was educated by her mother until entering a boarding school at eight years of age. After high school she spent a year in New York on a cultural exchange. She spent some time studying at Monash University after her return to Australia, and completed a dramatic arts course at the Victorian College of the Arts Drama School. A founding member of the WEST Theatre Company in 1979, McDonald has worked as a stage director for many years, contributing to national and international productions.
Looking for an additional creative outlet in the 1980s, she took a course in photography and, through this, she began to write. In 1992 she published her first book, Put Your Whole Self In, a story inspired by the elderly members of the Northcote Hydrotherapy and Massage Group, which won the Douglas Stewart Prize for Non-Fiction in 1993, together with Judith Brett's book Robert Menzies Forgotten People (1992). After meeting the Aboriginal storyteller Boori Monty Pryor, she collaborated on a series of books based on the stories of Pryor and his North Queensland family. Their first collaboration, Maybe Tomorrow (1998) received a Special Commendation from the Human Rights Awards and their second, My Girragundji (1998), won a Children's Book Council of Australia Award. They have since published several more books, most notably The Binna Binna Man (1999) which won several more awards, including the Ethnic Affairs Commission Award in 2000.