The only child of Joseph Henry Burnett Jr. and Hazel Perkins Burnett, Burnett was born in St. Louis, Missouri, in 1948, and raised in Fort Worth, Texas. His grandfather worked as secretary for the Southern Baptist Convention. His father wanted to be a pro athlete and was courted by the Brooklyn Dodgers, but instead he got a job in Fort Worth with the Tandy Corporation. Burnett was brought up in the Episcopal Church of his mother. He forgot the origin of his nickname, which he uses without a dash.

At around the same age, Burnett picked up the guitar. Overwhelmed by seeing the Beatles on The Ed Sullivan Show, he started garage bands with Bruton. After graduating from high school in 1965, they spent most of their time at Sound City, a recording studio in the basement of a radio station where Burnett became fascinated by recording. He wrote and produced his first song, “Free Soul”, with the Loose Ends under the name Jon T. Bone. His parents had divorced when he was in high school, and his father, with whom he was living, died in 1967. He attended Texas Christian University briefly, then dropped out to work as an artists and repertoire (A&R) agent.

Burnett produced and played drums on “Paralyzed”, the novelty hit by the Legendary Stardust Cowboy. As part of the pseudonymous group Whistler, Chaucer, Detroit, and Greenhill, he appeared on and produced The Unwritten Works of Geoffrey, Etc. (Uni, 1968). During the same year, he produced six songs for a group of friends who called themselves “The Case Hardy Boys”. Later this band would move to Los Angeles and become known first as “The Fare”, then “El Roacho”, and would have songs produced by Burnett, Daniel Moore, and Steve Katz. He moved to Los Angeles and recorded The B-52 Band & the Fabulous Skylarks (Uni, 1972) under the name J. Henry Burnett. In 1975 and 1976, he toured with Bob Dylan’s Rolling Thunder Revue.

In 1980, Burnett released his first post–Alpha Band solo album, Truth Decay, produced by Reggie Fisher, on the Takoma Records label. Truth Decay was a roots rock album described by the Rolling Stone Record Guide as “mystic Christian blues”. In 1982, his Trap Door EP (also produced by Reggie Fisher), released on the Warner Brothers label, yielded the FM radio hit “I Wish You Could Have Seen Her Dance”. Burnett toured after the release of Trap Door, opening several dates for The Who, leading a band that featured Mick Ronson on guitar. His 1983 album Proof Through the Night, whose song “When the Night Falls” got some FM airplay, and his 1987 album The Talking Animals were more in the vein of 1980s new wave music, while his self-titled 1986 album was an album of acoustic country music. His 1992 album The Criminal Under My Own Hat tended toward adult album alternative music.

In 1985, Burnett collaborated with Elvis Costello on the single “The People’s Limousine”, using the moniker “The Coward Brothers”. In 1987, he produced Roy Orbison’s two-record album, In Dreams: The Greatest Hits and two songs of Mystery Girl. Also in 1997, he wrote songs for the Sam Shepard play The Tooth of Crime: Second Dance, which premiered off-Broadway in New York City with Vincent D’Onofrio and Kirk Acevedo. An album of these songs, Tooth of Crime, was released in May 2008, featuring guitarist Marc Ribot, Sam Phillips, and David Poe, whose self-titled debut Burnett also produced that year. According to Burnett, he was inspired by the music of Skip James while composing songs for the updated version of Shepard’s play.

Burnett and singer-songwriter Sam Phillips were married in 1989 and divorced in 2004. He produced many of her albums, including Martinis & Bikinis and Cruel Inventions. He married Callie Khouri in 2006. He has three daughters, including one from his marriage to Phillips.

In 1992, Burnett worked on some songs with his friend River Phoenix for the movie The Thing Called Love. He was the coach of Samantha Mathis.

In 2000, Burnett produced the soundtrack and wrote the score for the Coen Brothers film O Brother, Where Art Thou?. The award-winning soundtrack featured music from Emmylou Harris, Alison Krauss, Ralph Stanley, Gillian Welch, and others performing traditional American folk music, blues and bluegrass – reminiscent of Burnett’s 1986 self-titled release. The album was a hit, garnering numerous industry awards from the Grammys, the Academy of Country Music, and the Country Music Association. The album was a commercial success and sold almost eight million copies, according to Billboard.

In 2004, under the name “Henry Burnett”, he arranged “I Wish My Baby Was Born” and wrote “Like a Songbird That Has Fallen” and “The Scarlet Tide” for the movie Cold Mountain. “Scarlet Tide”, co-written with Elvis Costello and performed by Alison Krauss, was nominated for an Academy Award for Best Song and won BAFTA’s Anthony Asquith Award for Achievement in Film Music.

In 2005, he composed the score for Wim Wenders’ film Don’t Come Knocking.

In 2005, he worked with actors Joaquin Phoenix and Reese Witherspoon for their singing roles as Johnny Cash and June Carter Cash in the film Walk the Line. Witherspoon won the Academy Award for Best Actress for her role in the film, giving special thanks to Burnett in her speech for “helping her realize her lifelong dream of being a country music singer”. He also produced that film’s soundtrack album and wrote its score.

In April 2006, he announced that his first concert tour in nearly two decades would begin on May 16 in Chicago at The Vic Theatre. Around the same time, jazz singer Cassandra Wilson released an album of blues songs, Thunderbird (2006), which was produced by Burnett. He wrote one of the album’s songs and co-wrote another with Ethan Coen. He produced music for the remake of the film All the King’s Men.

In 2006 he produced Brandi Carlile’s The Story album, the title song of which became a minor hit and was featured on a special broadcast of ABC-TV’s Grey’s Anatomy. Carlile’s guitarist and bassist, twins Tim and Phil Hanseroth, respectively, used instruments from Burnett’s private collection during the “live” recordings in Vancouver, British Columbia.

Proof Through the Night was reissued by Rhino Records’ Handmade Music in a limited edition of 5,000 on May 29, 2007, in an expanded version. The double CD also included the EPs Trap Door and Behind the Trap Door. In 2006, he released two albums. The True False Identity was his first album of new songs since 1992, and Twenty Twenty – The Essential T Bone Burnett was a 40-song career retrospective.

In early 2008, Pete Townshend announced that Burnett was to go into the studio that fall to help produce an all-covers album for The Who. However, on a May 15, 2008, episode of the NPR radio show All Songs Considered, Burnett threw that project into question. He stated that Townshend had indicated in a blog that he was putting all his projects on hold.

In 2008, it was reported that Burnett “started a new venture called Code, which aims to do for music what THX did for movie-theater sound: set standards that ensure the best possible quality.” He is opposed to the trend of brighter and more compressed processing, sufficiently so, that he essentially retired from the music business around 1995–1996 and pursued an opportunity to work in theater with Sam Shepard, leading to his work on several films.

In 2009, Burnett produced albums for Moonalice and Grace Potter and the Nocturnals. In that same year, he also produced Elvis Costello’s album Secret, Profane & Sugarcane as well as co-writing the song “Sulfur to Sugarcane” with Costello.

Burnett produced a collaboration album by Elton John and Leon Russell. John, Russell, and Bernie Taupin (John’s lyricist) wrote songs together in late 2009. The album, The Union, was recorded in January 2010 and released in October 2010.

In 2009, Burnett collaborated on music for the movie Crazy Heart, winning a Golden Globe, an Academy Award, and a Grammy Award for the song “The Weary Kind”, which he composed with Ryan Bingham. Burnett was also a producer of the film, along with Jeff Bridges and Robert Duvall.

In 2010, Burnett produced Gregg Allman’s album Low Country Blues, released in January 2011.

In 2010 Burnett won several awards for the movie Crazy Heart. He and Ryan Bingham shared the Academy Award for Best Original Song and the Golden Globe Award for Best Song for “The Weary Kind”. The song won them a Critics’ Choice Award and won Burnett a Satellite Award from the International Press Academy. For the score, Burnett and Stephen Bruton won an award from Los Angeles Film Critics Association and Burnett won the Frederick Loewe award. He shared the award for Best First Feature at the Independent Spirit Awards with the producers (Robert Duvall, Rob Carliner and Judy Cairo) and director Scott Cooper. He was awarded an honorary doctorate in performing arts from the University of North Carolina at Chapel Hill in May 2019.

In 2013, he was the executive music producer for the Coen brothers’ film Inside Llewyn Davis.

Burnett learned golf at an early age. When he was seven years old, he played at the Texas Christian University course. He idolized golf pro Ben Hogan, who was from Fort Worth. Burnett and the other boys occasionally watched him practice at the driving range. Burnett was on the golf team at Paschal High School. In 2014 he participated in the professional tournament at Pebble Beach.

In 2014, Burnett produced Punch Brothers’ fourth studio album, The Phosphorescent Blues, which was released in January 2015.

In 2016 he produced the Italian bluesman Zucchero Fornaciari’s album Black Cat.

In July 2018 he produced Sara Bareilles’ Amidst the Chaos in Los Angeles.

With Bert Mathews, Burnett is the co-founder of Cloud Hill Partnership, a company that planned to redevelop Herschel Greer Stadium in Nashville, Tennessee. The proposed redevelopment of the 21-acre (8.5 ha) site included music and art space, a community center, open park space, and affordable housing. The Cloud Hill proposal was abandoned in January 2018 after archaeologists determined that undisturbed areas on the edge of the Greer property, but not part of the stadium itself, were the unmarked burial sites of slaves forced to build the adjacent Fort Negley.

On June 25, 2019, The New York Times Magazine listed T Bone Burnett among hundreds of artists whose material was reportedly destroyed in the 2008 Universal fire.