Nirmal Verma was born on (3 April 1929 in Shimla, where his father worked as an officer in the Defense Department of the British Indian Government. He was the fifth child among his eight siblings. One of his brothers is one of India's greatest artists Ram Kumar..

He wrote his first story for a students' magazine in the early 1950s. He did M.A. in History from St. Stephen’s College, Delhi University. There after he started teaching in Delhi and writing for various literary magazines.

His activism streak was visible even during his student days; in 1947-48, he regularly attended Mahatma Gandhiji's morning prayer meetings in Delhi, even though he was a card holding member of Communist Party of India, which he resigned in 1956, after Soviet invasion of Hungary. The very activism was soon to be reflected in his stories, which added a whole new dimension to the Indian literary scene.

He stayed in Prague for 10 years, where he was invited by Oriental Institute to initiate a program of translation of modern Czech writers like Karel Capek, Milan Kundera, and Bohumil Hrabal, to Hindi; he also learnt the Czech language, and translated nine world classics to Hindi, before returning home in 1968, as the result of Prague Spring .

During his stay in Prague he travelled widely across Europe, and the result was seven travelogues, including Cheeron Par Chandni (1962), Har Barish Mein (1970) and Dhund Se Uthti Dhun and his first novel, based on his student days in Prague, titled, “Ve Din” (Those Days) (1964). On his return from Prague, he was disillusioned by Communism and later became highly vocal against Indian Emergency , and Chinese annexation of Tibet. His subsequent writing reflected his concerted relooking of Indian traditions, which he found to be innately modern, compared with external modernity reflected in the western viewpoints and cultural milieu, which were being imposed on Indian ethos, all around, so much so that later his views were confused as pro-Hindutva as well.

From 1980-83, Verma served as chairman of Nirala creative writing chair in Bharat Bhavan, Bhopal. In 1988-90 he was director of Yashpal Creative Writing Chair in Shimla. A film based on his story, Maya Darpan (1972), directed by Kumar Shahani, won theFilmfare Critics Award for Best Film.

In his popular novel A Torn Happiness, August Strindberg looms large over the heads of many characters.

He died on 25 October 2005 in New Delhi.

Nirmal Verma, together with Mohan Rakesh, Bhisham Sahni, Kamleshwar, Amarkant, Rajendra Yadav and others, is the founder of the Nayi Kahani (new short story) in Hindi literature.

Nirmal Verma is best known for his short stories and his best known story, 'Parinde' (Birds) (1959) is supposed to be the pioneer of the Nai Kahani Movement in Hindi literature. Nirmal Verma's other notable stories are Andhere Mein, Dedh Inch Upar, and Kavve Aur Kala Pani.Nirmal Verma's last story was published in "Naya Gyanodaya" August 2005 issue, titled "Ab Kuchh Nahin".

Nirmal Verma experimented vividly with theme as well as technique of the Hindi short story in the 60s and 70s.

A collection of his letters written to Ramkumar (well known artist and his brother) has been published by Bhartiya Jnanpith, titled "Priya Ram" (Dear Ram). His books have been translated into several European languages such as English, Russian, German, Icelandic, Polish, Italian and French.

Novels

• Ve Din — His first novel, set in Prague, former Czechoslovakia (1964),
• Antima Aranya (The Last Wilderness)
• Ek Chithara Sukh (1979)
• Lal Teen Ki Chhat (Red Tin Roof), (1974)
• Raat ka Reporter (1989)

Story anthologies

• 'Parinde' (Birds) (1959)
• Jalti Jhari (1965)
• London ki raat *Pichli Garmiyon Mein (1968)
• Andhere Mein
• Dedh Inch Upar
• Beech Bahas Mein (1973)
• Meri Priya Kahanian (1973)
• Pratinidhi Kahaniyan (1988)
• Kavve aur Kala Pani (1983)
• Sookha aur Anya Kahaniyan (1995).
• Dhage (2003)

Reportage and travelogues

• Cheeron Par Chandni (1962)
• Har Barish Mein (1970)
• Dhund Se Uthti Dhun.

Plays

• Teen Ekant (1976)

Essays and literary criticism

• Shabda aur Smriti (1976) — Literary essay
• Kala Ka Jokhima (1981) - investigation of the Indic arts in the 20th century
• Dhundha Se Uthati Dhun - written like a diary on issues related to Hindi literature. — Literary criticism
• Dhalan se Utarate Huye - Literary criticism
• Bharat Aur Europe: Pratishruti Ke Kshetra (1991) - Essay.