Penelope Hanley was born in Brisbane and moved with her family to East Gippsland as a baby. She undertook an English honours degree at the Australian National University and began publishing her writing in student newspapers, local magazines and the Canberra Times. Hanley later completed a PhD on Australian women artists, which included a novel titled Wild Women. She has worked as a writer, editor, researcher and communications manager.
Hanley has edited books and papers on a variety of subjects, including in urban and environmental studies and film restoration. She has written numerous book and film reviews, and taught creative writing. Her published fiction includes short stories and the novel Full House, a lively contemporary comedy of manners. She has twice been a Writer's Fellow at Varuna, the Eleanor Dark Foundation residence, and won a writer's grant from the ACT Government to assist in the completion of her third novel.
Penelope has also written the non-fiction works: Inspiring Australians: The First Fifty Years of the Winston Churchill Memorial Trust (2015, published by Australian Scholarly Publishing) and Women in Politics: Showing the Way (2010, published by Australian Local Government Association).