Paltrow was born in Brooklyn, New York, the son of Dorothy (née Weigert) and Arnold Paltrow. He studied at Tulane University in New Orleans, Louisiana. In the late 1960s, he began directing stage productions in New York City, where he met actress Blythe Danner, whom he married on December 14, 1969.

He was the producer of the television series The White Shadow and St. Elsewhere. His last production was the film Duets, which starred his daughter, Gwyneth Paltrow.

Paltrow died on October 3, 2002, while vacationing in Rome, Italy, to celebrate his daughter's 30th birthday. He was 58 years old. Paltrow had suffered from oral cancer for several years, and his death was due to complications from cancer and pneumonia. In 2007, his widow, in cooperation with The Oral Cancer Foundation, set up a fund in his name to address the oral cancer issues in the US. The foundation works primarily in the areas of public awareness, early detection, patient support functions and research.

Coldplay singer Chris Martin married Paltrow's daughter Gwyneth Paltrow in 2003. The 2005 Coldplay album X&Y carried a dedication to Bruce Paltrow.[citation needed]

Paltrow was a descendant of Rabbi David HaLevi Segal of Kraków through the Russian rabbinical family Paltrowitch, which produced 33 rabbis over several generations.