Shusterman was born on November 12, 1962, and raised in Brooklyn, New York. From a young age, Shusterman was an avid reader. At age 16, Shusterman and his family moved to Mexico City. He finished high school there at the American School Foundation and is quoted as saying that “Having an international experience changed my life, giving me a fresh perspective on the world, and a sense of confidence I might not have otherwise.” He attended the University of California, Irvine, where he double-majored in psychology and theater, and he was also on the varsity swim team.

Shusterman has received numerous honors for his books, including the National Book Award in 2015 for his novel Challenger Deep, the Boston Globe–Horn Book Award, and the 2008 California Young Reader Medal for The Schwa Was Here. He served as a judge for the PEN/Phyllis Naylor Working Writer Fellowship in 2012. His novels Downsiders and Full Tilt have each won over 20 awards. Unwind has won more than 30 awards and was in development with Constantin Films as a feature film series, though that did not work out, Shusterman announced in 2020. His novel Scythe is in development with Universal as a feature film. His book Skinjacker was a National Book Award winner and has comments from Orson Scott Card, BCCB, VOYA, and School Library Journal.