Troyer grew up in Centreville, Michigan and graduated from Centreville High School in 1987. Today, he gives his name to the Verne Troyer festival, held in his home town of Centreville.

Prior to his stardom, he was employed by Sprint at their Texas facility as an inside wiring technician reporting to customer service.

Troyer's most famous role is Mini-Me in the Austin Powers series of movies, a character who is supposed to be a miniature clone of Dr. Evil. He also appeared as Griphook in Harry Potter and the Philosopher's Stone, one of only three non-British or Irish actors (the others were Zoe Wanamaker and Eleanor Columbus). Other notable roles include a part in How the Grinch Stole Christmas and as the small waiter in Fear and Loathing in Las Vegas. He was a series regular on the UPN comedy Shasta McNasty. As well, he played Napoleon Bonaparte in the short-lived syndicated series Jack of All Trades

Troyer appeared as himself in an Apple Computer commercial for its 12-inch and 17-inch PowerBooks, in which he used the larger computer and Chinese NBA star Yao Ming used the smaller one.

He was married to Genevieve Gallen. Troyer filed for annulment on February 23, 2004 on the grounds of "unsound mind" and "fraud", even though he also claims that the couple were never married.

Troyer also appeared on VH1's 4th of season of The Surreal Life. Troyer's part on the show received much media attention when he became inebriated and urinated on the carpet.

On Christmas Eve 2005, Verne made an appearance alongside various other Hollywood celebrities on the British sitcom, Avid Merrion's XXXmas Special.

Troyer is a fixture at parties at the Playboy Mansion and often appears in photos with other celebrities and beautiful women in the Playboy party pictures section found at the beginning of the magazine.