Holly Throsby was raised in Sydney, Australia and began studying guitar at the age of 8. She is the daughter of the renowned ABC Classic FM radio presenter Margaret Throsby. Her uncle is the noted cultural economist, David Throsby, and her grandmother was a cellist in the Sydney Symphony Orchestra. As a child, Throsby was encouraged in her musical pursuits. She studied classical guitar techniques and began composing from the age of 11. After earning a B.A. degree (majoring in English) from the University of Sydney, Throsby worked in an art house video store and travelled extensively before recording her debut LP, On Night.

Recorded with experimental producer Tony Dupe at his cottage on Saddleback Mountain on the NSW south coast in 2003, On Night was noted for its lyrical sophistication, emotional resonance and bare, unadorned production (native bird calls, frogs and barking dogs can be heard throughout). It was released by the influential indie label Spunk Records in 2004 and received critical praise in Australia and abroad. Throsby soon found herself touring with the likes of Bonnie "Prince" Billy, Joanna Newsom, Smog, M. Ward and Devendra Banhart.

In 2006, Throsby released her second LP, Under the Town, again produced by Dupe and featuring a larger group of accompanying musicians. Retaining the literate warmth of the debut, Under the Town was again lauded by critics and Throsby was nominated for an ARIA Award for Best Female Artist.

Throsby’s third album, "A Loud Call", was recorded in Nashville by Mark Nevers (Lambchop, Andrew Bird) with string and horn arrangements recorded in the Kangaroo Valley, NSW, by Dupe. Featuring guest vocals by Will Oldham a.k.a. Bonnie ‘Prince’ Billy and guest musicians from Lambchop and Silver Jews, "A Loud Call" was hailed by the Australian and the British press as Throsby’s strongest work. On 10 Se