Graham was born in Milwaukee, Wisconsin, the daughter of Joan, a teacher and noted author of children's books, and James Graham, a retired FBI agent. Graham has a younger sister, Aimee, who is also an actress and writer. The family, who are of Irish descent, followed a strict traditional Catholic upbringing; Graham has since estranged herself from the Catholic Church. Graham has practiced Hinduism Read more...

As a supporting actress, Graham was cast in a number of parts that brought her attention, including Nadine in 1989 film Drugstore Cowboy. In 1991, she appeared in the TV series Twin Peaks as Annie Blackburn, Dale Cooper's second-season love interest. However, her breakthrough role was that of 1970s porn starlet Roller Girl in 1997's Boogie Nights, for which she received several award nominations. Read more...

Graham has been in relationships with Chris Doyle, Adam Ant and actors Elias Koteas, Heath Ledger and Edward Burns (1998-2000).