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Born in Newton, Massachusetts, Erbe is a veteran of both film and television and has been a working actress since she graduated from New York University in 1989. Most recently, she appeared in the feature film Speaking of Sex (2001) with Lara Flynn Boyle and Bill Murray.

Erbe also gained notice in the 1999 box office hit Stir of Echoes opposite Kevin Bacon, and Dream with the Fishes (1997) with David Arquette. Her additional film credits include Entropy, Kiss of Death, Mighty Ducks 2, Rich in Love and What About Bob?

Her television credits include playing the infamous death row inmate Shirley Bellenger on the acclaimed HBO series Oz. She also appeared on NBC's Homicide: Life on the Street, the miniseries George Wallace, Showtime's original production of Naked City: Justice with a Bullet, NBC's Another World, and the television movie Breathing Lessons.

Before appearing in feature films, Erbe began her career on the stage. She is a member of the Steppenwolf Theater Company and has starred in many of their productions. She earned a Tony Award nomination in 1991 for her portrayal of Mary in Speed of Darkness.

Erbe currently resides in New York with her two children.