The youngest of five children, Sydney Penny was born on August 7, 1971 in Nashville, Tennessee to country-western entertainers Hank and Shari Penny. Drawn to the spotlight early in life, Sydney made her stage debut at age 3, spontaneously performing in the middle of her father's act. Her career began at age 6 when she appeared in a toy commercial.

Sydney received critical acclaim for her performance as young Meggie in the smash-hit miniseries The Thorn Birds, which starred Richard Chamberlain. She also earned two Daytime Emmy nominations for her roles on Santa Barbara and All My Children. Her other television credits include The New Gidget, Sunset Beach, Beverly Hills 90210, Hyperion Bay and The Bold and the Beautiful.

Her movie credits include Pale Rider with Clint Eastwood, Running Away with Sophia Loren and the French film Bernadette.

Sydney has been married to Robert Powers since 1995. They have a son together, Chasen (b. 2007).