Born Ella Wallace Raubes in Snoqualmie Falls, Washington, Raines studied drama at the University of Washington and was appearing in a play there when she was seen by Howard Hawkes. She became the first actor signed to the new production company he had formed with the actor Charles Boyer, "B-H Productions", and made her film debut in Corvette K-225 in 1943. Her other films include Phantom Lady, Hail the Conquering Hero, Tall in the Saddle, Enter Arsene Lupin and The Suspect (all 1944), The Senator Was Indiscreet (1947), Impact and A Dangerous Profession (both 1949) and her final film The Man in the Road (1957).

During 1954 she starred in her own television series Janet Dean, Registered Nurse. She also appeared in such television series as Robert Montgomery Presents, Douglas Fairbanks Jr. Presents, Lights Out, Pulitzer Prize Playhouse and The Christophers.

She retired in 1957 and for the rest of her life worked as an acting teacher. Her only appearance in front of the cameras after her retirement was a guest role in the series Matt Houston in 1984.

She died from throat cancer in Sherman Oaks, California.

Ella Raines has two stars on the Hollywood Walk of Fame for her contribution to motion pictures at 7021 Hollywood Boulevard, and for television at 6600 Hollywood Boulevard.

Ella Raines was married in 1947 to Robin Olds.