Betty Paterson was known primarily as illustrator and portraitist of young children. Her well known artist sister Esther Paterson who was married to naval historian and journalist G. Hermon Gill, collaborated with Betty in illustrating children's books. The sisters were regular contributors of drawings and cartoons to the Bulletin and newspapers. Their father Hugh Paterson was the artist who re-designed Australia's coat of arms; suggested that portraits of our Prime Ministers should be painted; and was the first Chairman of the Commonwealth Art Advisory Board. Betty also studied at the Melbourne Conservatorium and was known as a singer.
She is also credited with the design of many baby books, such as the State Bank of Victoria's gifts to mothers of a booklet, Baby Book of Happy Events, which allowed parents to chronicle their child's progress. Paterson joined the list of famous Australian artists who illustrated works of Dame Mary Daly. and her portraits were in the collections of the British Royal Family, the Roosevelts and Maurice Chevalier. Her cousin was the dramatist Louis Esson.