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Atala was born in Peru and raised in Coral Gables, Florida. Atala attended the University of Miami, and he has an undergraduate degree in psychology. He attended medical school at the University of Louisville, where he also completed his residency in urology. He was a fellow at the Harvard Medical School–affiliated Boston Children's Hospital from 1990 to 1992, where he trained under world-renowned pediatric urologic surgeons Alan Retik and Hardy Hendren. He served as the director of the Laboratory for Tissue Engineering and Cellular Therapeutics at Boston Children's Hospital. His work there involved growing human tissues and organs to replace those damaged by disease or defect. This work became important due to shortages in the organ-donor program.

In 2011, he was elected to the Institute of Medicine of the National Academy of Sciences. He was named by Scientific American as a Medical Treatments Leader of the Year for his contributions to the fields of cell, tissue, and organ regeneration. Dr. Atala's work was listed as one of Time Magazine's top ten medical breakthroughs of the year, and as Discover Magazine's top science story of the year in the field of medicine in 2007.

Atala's work was seized on by opponents of the Embryonic Stem Cell Research Bill (a part of the 100-Hour Plan of the Democratic Party in the 110th United States Congress) as a more moral alternative. He wrote a letter saying, inter alia, "Some may be interpreting my research as a substitute for the need to pursue other forms of regenerative medicine therapies, such as those involving embryonic stem cells. I disagree with that assertion."

Atala continued his work in tissue engineering and printable organs after moving to Wake Forest Baptist Medical Center and the Wake Forest School of Medicine in 2004. Atala led the team that developed the first lab-grown organ (a bladder) to be implanted into a human.

Anthony Atala, M.D., (born July 14, 1958) is the W.H. Boyce professor of urology and director of the Wake Forest Institute for Regenerative Medicine, and chair of the Department of Urology at Wake Forest School of Medicine in North Carolina. Regenerative medicine is "a practice that aims to refurbish diseased or damaged tissue using the body's own healthy cells".