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E. F. Benson Frederic was born at Wellington College. He was the third son of Edward White Benson (1829–1896), headmaster of Wellington College and subsequently archbishop of Canterbury, and his wife, Mary Sidgwick (1841–1918). He was a younger brother of A. C. Benson (Master of Magdalene College, 1915-1925), Mary Eleanor Benson (1863–1890), and Margaret Benson (1865–1916), and an elder brother of Robert Hugh Benson (1871–1914). He was educated at Temple Grove School, Sheen, at Marlborough College, and at King's College, Cambridge, where he was exhibitioner (1888) and scholar (1890), and secured first classes in both parts of the classical tripos (1890, 1891).
Worked in Athens for the British School of Archaeology (1892–5) and in Egypt for the Society for the Promotion of Hellenic Studies (1895). His first novel, Dodo, was published in 1893. From 1895 to 1918 he lived in London and devoted himself to writing. From 1918 he lived for the greater part of each year at Lamb House, Rye, Sussex, which had been the home of Henry James.
He published at least ninety-three books, excluding collaborations. His writings fall into three groups: novels of social satire, reminiscences, and horror stories.
Benson never married and lived alone in Rye. He was mayor of Rye from 1934 to 1937 and a JP. He was elected an honorary fellow of Magdalene College, Cambridge, in 1938 and was appointed OBE. He died in University College Hospital, London, on 29 February 1940, and was buried in the Rye cemetery after a funeral conducted by the bishop of Chichester.
The E. F. Benson Society was founded in London in 1984.