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At the age of 16, Stahl was sent to a boarding prep school near Philadelphia. He attended Columbia University. Post-college he traveled, living in Greece – in caves outside of Matala, on Crete, the streets of Paris, then London, where he landed a job as a bartender at an Irish pub. He later returned to America to live in New York City, where he became a writer.

Stahl and Barbara Turner wrote a screenplay for an HBO film about Ernest Hemingway and his relationship with Martha Gellhorn entitled Hemingway & Gellhorn starring Clive Owen and Nicole Kidman. James Gandolfini served as executive producer to the film, which was directed by Philip Kaufman and first aired on HBO on May 28, 2012.

Permanent Midnight, his 1995 memoir, was adapted by Stahl into a 1998 film of the same name starring Ben Stiller that raised Stahl's profile and set the stage for his ongoing work in film. He wrote the screenplay for Bad Boys II, which starred Will Smith and Martin Lawrence. His novels Perv: A Love Story and Plainclothes Naked enjoyed moderate success. I, Fatty, a fictional autobiography of legendary movie comedian Roscoe Arbuckle received a favorable review from Thomas Mallon in The New Yorker and attracted attention from a variety of national media. According to Stahl, Johnny Depp has optioned the film rights for I, Fatty. Stahl edited The Heroin Chronicles (Akashic Books 2013) a collection of stories by various authors.

He would go on to become a writer for the 1980s TV series ALF, Thirtysomething, and Moonlighting. In 1990 he would also write an episode for Twin Peaks and Northern Exposure; his work on the former was described by series co-creator Mark Frost as "an absolute car wreck... He turned in a completely incomprehensible, unusable, incomplete script a few days late and as I recall there were blood stains on it." He has also acted in seven films.

Stahl began publishing short fiction, won a Pushcart Prize in 1976, and made a living writing for magazines and doing porn stories for cash. One writing job as humor editor for Hustler meant moving to Columbus, Ohio and living at the YMCA until the magazine moved its headquarters to California. Stahl lost his job six months to the day after taking it and ended up on unemployment in California, alongside an escalating heroin dependency, which eventually led to his contracting hepatitis C.

Jerry Stahl (born September 28, 1953) is an American novelist and screenwriter. He is best known for his memoir of addiction Permanent Midnight. A 1998 film adaptation followed with Ben Stiller in the lead role.