Norman Douglas was born George Norman Douglas on 8 December 1868 at Falkenhorst, Thuringen, Austria, the third son of John Shalto Douglas and Vanda, daughter of Baron Ernst von Polnitz. His first published works were scientific articles published under the name G. Norman Douglas. "The Variation of Plumage in the Corridae" appeared in The Zoologist when Douglas was seventeen years old. In 1888 he paid his first visit to Capri and recognized the Mediterranean lands as his spiritual home. Indeed, he would spend the greater part of his life in Italy.

Douglas left Karlsruhe in 1889 and spent the next four years moving from England to France to Greece, always in the midst of, or escaping, a love affair. In March 1893, he entered the Foreign Office by examination, and eventually became the third Secretary of the British Embassy. He retired in 1896 at the age of twenty-eight.

Douglas then bought a villa on the Posillipo, where he undertook a variety of studies, and traveled extensively. In 1898 he married his first cousin, Elsa Fitzgibbon, with whom he published Unprofessional Tales in 1901 under the pseudonym Normyx. They had two sons, Archie, born in 1899, and Robin, born in 1900. Robin followed the footsteps of his author-father, writing Booze Runner in 1935[?]. Douglas and Elsa divorced in 1903 with some animosity. This stage in Douglas's life after his divorce was marked by the escape from the mainland to Capri, recurrence of an old illness, a significant change in sexual direction, and the beginning of serious writing. Between 1904 and 1907, he wrote a number of short stories that focused on the literature and history of Capri, later published collectively under the title Capri: Materials for a Description of the Island. He also spent a good deal of time working on a manuscript that would become his first significant book, Siren Land.

In 1910 Douglas reluctantly left Capri for London. Siren Land was published in 1911, and Fountains in the Sand: Rambles Among the Oases of Tunisia in 1912. From 1913 to 1916, Douglas wrote reviews for the English Review as an assistant editor. His distaste for the job was made apparent by his sarcastic reviews that were not true literary criticism. In 1916 Douglas, longing to leave the English Review, looked for war work but was refused by the government. In addition, he was told to leave England or face charges. These charges more than likely involved sexual misconduct with one or more of the children with whom he had been associated while collecting information for his book London Street Games. After leaving England, Douglas spent what was probably his darkest year in Paris. It was 1917, and Douglas was almost fifty years old and destitute. Yet, South Wind, his most lighthearted novel, was published during this year.

The 1920s through the 1930s were busy and fruitful for Douglas. He wrote more then twelve books; traveled through Italy, Africa, Syria, and Greece; and became well known in Capri and Florence. It was during the 1920s that Douglas began his friendship and business association with Giuseppe (Pino) Orioli. Orioli was a collector and seller of rare books who began publishing his own Lungarno Series with a reprint of Douglas's Nerinda. He published several of Douglas's books in limited editions, as well as those of Maugham, Aldington, and D. H. Lawrence. Throughout the late and mid-1930s, Douglas and Orioli spent much of their time traveling together through India, Austria and Calabria. These two close friends were often referred to as Pinorman by close acquaintances. Douglas's publications of this time included D. H. Lawrence and Maurice Magnus: A Plea for Better Manners.

In 1937 Douglas was forced to leave Florence and flee to the south of France due to a scandal involving a young girl. He remained in France until 1941, at which time he relocated to Lisbon. Orioli had been living in Lisbon since 1939 with his servant Carlo. Relations between Douglas and Orioli had been strained after the death of Reginald Turner, who had left a large inheritance to Orioli. However, their relationship was healed during the months of Orioli's illness that preceded his death in January, 1942. Soon thereafter, Douglas left for London. It was not until June, 1946, that Douglas was able to return to war-torn Italy. His flat in Florence had been the victim of Fascist lootings but, fortunately, an old friend offered the hospitality of his home on Capri. It was there that Douglas lived for six years until his death in February, 1952.