McGraw was born in Vinita, Oklahoma and spent most of his childhood in Oklahoma, Texas, and Kansas. McGraw attended high school at Shawnee Mission North High School in Shawnee, Kansas. His father was an equipment supplier for the oil drilling industry and left his job to pursue his Ph.D. in psychology. McGraw won a football scholarship and played as a linebacker for the University of Tulsa, but when he was injured he quit and transferred to Midwestern State University. He graduated with a B.A. in psychology in 1975, and went on to get his PhD. from the University of North Texas in 1979.

He has frequently been the butt of jokes by comedians but none more than David Letterman. One popular segment, "Dr. Phil's words of wisdom," would often be just a clip of an off the cuff remark by Dr. Phil.

Winfrey was impressed with McGraw and in 1998 he began appearing weekly on her show as a "Relationship and Life Strategy Expert." In 2002, he was given his own syndicated daily TV show, , produced by Winfrey's Harpo Studios. The format is an advice show, where he tackles a different topic on each show, offering advice for his guests' troubles. McGraw has authored a number of self-help books on topics such as relationships and weight loss.

McGraw is noted for his Texas accent. His celebrity is largely attributed to his behavioral approach to psychology. Some critics regard advice given by him to be at best simplistic and, at worst, invective. However, the of McGraw's advice is said to prompt the person to "get real", and to confront the issues at hand. In 2005, he signed a five-year extension of his syndication deal with his show's distributors, King World Productions Inc. The deal will pay McGraw a reported USD$15 million and keep him on the airwaves through the 2013–2014 TV season.

In September 2005, McGraw called for Americans to boycott Aruba in response to the disappearance of Alabama teenager Natalee Holloway. A taped segment was shown on McGraw's show in which one of the suspects in the case made incriminating statements. However, the tape's authenticity has been disputed by experts. [1]

In October 2005, disgruntled dieters declared they will seek class-action suit against McGraw claiming his weight-loss program cost them $120 per month in supplements, but they failed to lose any weight.

McGraw was parodied in the thirty-fifth season of episode "The Devil and Dr. Phil."

McGraw was married to Debbie Higgins McCall from 1970 to 1973. He married Robin Jameson in 1976 and they have two sons, Jay and Jordan.