Rachel Dratch was born on 22 February 1966 in Lexington, Massachusetts, to a Jewish family. She attended an all-girls high school and then went to college, graduating from Dartmouth with a degree in drama. After college, she moved to Chicago to pursue a career in comedy. She became a member of the Second City comedy troupe and landed a role on Saturday Night Live. She was known for her recurring characters, including Debbie Downer and Denise the Boston teen. She also wrote for several television shows, adding to her net worth.

In addition to SNL, she has appeared in many other TV shows and films, including The King of Queens, Monk, 30 Rock, Sisters, Click, I Now Pronounce You Chuck and Larry, and Salem Rogers: Model of the Year 1998. She has written and acted in many movies, as well. In 2022, she made her Broadway stage debut in the play POTUS: Or, Behind Every Great Dumbass Are Seven Women Trying to Keep Him Alive. She has also published an autobiographical book, Girl Walks Into a Bar: Comedy Calamities, Dating Disasters, and a Midlife Miracle.

In 2009, she became pregnant with a son named Eli Benjamin Wahl. She married John Wahl, who works as a consultant in the natural foods industry, in 2010. She is now living a happy life with her son and husband in New York City. Her social media posts show them spending time with their dog and attending events together.