Hsu-Ming Teo moved to Castle Hill, Sydney at the age of seven. Upon leaving school she began studying Medicine but changed to Arts in her second year of university. She has tutored at both Macquarie University and the University of Sydney, where she was awarded a Doctor of Philosophy degree in 1998 on the subject of British women's travel writing in the late nineteenth and early twentieth centuries. She has taught postcolonial studies at the University of Southern Denmark and in 2001 through 2006 worked as a research fellow at the Department of Modern History, Macquarie University. With Richard White, Teo edited the social history anthology Cultural History in Australia (2003).
In 1999, Dr Teo's novel Love and Vertigo won the Australian/Vogel Literary award for a first novel by a writer under thirty five. Published in 2000, the novel is about immigration and an exploration of family history in the wake of the death of the protagonist's mother, the story moving between Singapore, Malaysia and Australia.
In 2010, Dr Teo was appointed one of the judges for the Man Asian Literary Prize.