Falkholt was born on 15 May 1988 in Sydney to a Swedish father and an Italian mother, Lars and Vivian. She attended Gilroy College in Castle Hill, and was awarded the Higher School Certificate in 2006. She obtained a Bachelor of Arts in Media and Communication at the University of New South Wales, where she starred in several theatrical productions including the musical Cabaret. After graduation, she worked production jobs at Channel Seven and Carnival Films, building a portfolio by acting in television commercials.

In 2012, Falkholt was accepted into the National Institute of Dramatic Art (NIDA). While studying there, she had minor television roles in Tricky Business and Underbelly: Badness. Falkholt graduated from NIDA in 2015, and the following year took on the recurring role of Hope Morrison in the long-running series Home and Away. In 2017 she completed work on her first feature film, Harmony, released after her death in October 2018, in which she played the titular character. She also filmed a guest role in Nine Network’s drama Bite Club. Shortly before the accident, Falkholt finished filming the role of Genevieve in crime drama Mystery Road.

Following the crash, Falkholt was taken to Sydney’s St George Hospital, where she underwent surgery that included the removal of a kidney and part of her skull. On 12 January 2018, a spokesperson for St George Hospital confirmed that her life support had been turned off. She died in hospital on 17 January 2018, aged 29.