Born into an established bourgeois family, Dancourt was educated in Paris by Jesuits and studied law. In 1680 he married an actress, Thérèse de La Thorillière. They debuted with the Comédie-Française in 1685, beginning an association that flourished for 33 years. Dancourt's skill as a comic actor and playwright brought him the favour of Louis XIV and established him as the successor to Molière.

Like Molière, Dancourt was expert at portraying current social types, and his comedies often seized on recent scandals to ridicule the decadence and social pretenses of the period. Written in prose and never assuming artistic greatness, they were peopled by characters whose vices were made hilarious by Dancourt's witty, effortless dialogue and his ability to make the most of a comic situation. His best-known work, Le Chevalier à la mode (1687; “The Knight à la Mode”), deals with a fortune hunter's simultaneous courtship of three women. Other plays are Les Bourgeoises à la mode (1692) and Les Bourgeoises de qualité (1700), in which middle-class women ape the nobility, La Désolation des joueuses (1687), on the current gambling rage, and La Maison de campagne (1688; “The Country House”), making fun of crude provincial manners.

Of over 50 plays printed under Dancourt's name, an undetermined number were collaborations with other writers. In 1718 Dancourt abruptly retired to his estate, devoting himself until his death to translating the Psalms.