Goldsmith was the son of an Anglo-Irish clergyman, the Rev. Charles Goldsmith, curate in charge of Kilkenny West, County Westmeath. At about the time of his birth, the family moved into a substantial house at nearby Lissoy, where Oliver spent his childhood. Much has been recorded concerning his youth, his unhappy years as an undergraduate at Trinity College, Dublin, where he received the B.A. degree in February 1749, and his many misadventures before he left Ireland in the autumn of 1752 to study in the medical school at Edinburgh. His father was now dead, but several of his relations had undertaken to support him in his pursuit of a medical degree. Later on, in London, he came to be known as Dr. Goldsmith—Doctor being the courtesy title for one who held the Bachelor of Medicine—but he took no degree while at Edinburgh nor, so far as anyone knows, during the two-year period when, despite his meagre funds, which were eventually exhausted, he somehow managed to make his way through Europe. The first period of his life ended with his arrival in London, bedraggled and penniless, early in 1756.

Goldsmith's rise from total obscurity was a matter of only a few years. He worked as an apothecary's assistant, school usher, physician, and as a hack writer—reviewing, translating, and compiling. Much of his work was for Ralph Griffiths's Monthly Review. It remains amazing that this young Irish vagabond, unknown, uncouth, unlearned, and unreliable, was yet able within a few years to climb from obscurity to mix with aristocrats and the intellectual elite of London. Such a rise was possible because Goldsmith had one quality, soon noticed by booksellers and the public, that his fellow literary hacks did not possess—the gift of a graceful, lively, and readable style. His rise began with the Enquiry into the Present State of Polite Learning in Europe (1759), a minor work. Soon he emerged as an essayist, in The Bee and other periodicals, and above all in his Chinese Letters. These essays were first published in the journal The Public Ledger and were collected as The Citizen of the World in 1762. The same year brought his Life of Richard Nash, of Bath, Esq. Already Goldsmith was acquiring those distinguished and often helpful friends whom he alternately annoyed and amused, shocked and charmed—Samuel Johnson (Johnson, Samuel), Sir Joshua Reynolds, Thomas Percy, David Garrick, Edmund Burke, and James Boswell. The obscure drudge of 1759 became in 1764 one of the nine founder-members of the famous Club, a select body, including Reynolds, Johnson, and Burke, which met weekly for supper and talk. Goldsmith could now afford to live more comfortably, but his extravagance continually ran him into debt, and he was forced to undertake more hack work. He thus produced histories of England and of ancient Rome and Greece, biographies, verse anthologies, translations, and works of popular science. These were mainly compilations of works by other authors, which Goldsmith then distilled and enlivened by his own gift for fine writing. Some of these makeshift compilations went on being reprinted well into the 19th century, however.

By 1762 Goldsmith had established himself as an essayist with his Citizen of the World, in which he used the device of satirizing Western society through the eyes of an Oriental visitor to London. By 1764 he had won a reputation as a poet with The Traveller, the first work to which he put his name. It embodied both his memories of tramping through Europe and his political ideas. In 1770 he confirmed that reputation with the more famous Deserted Village, which contains charming vignettes of rural life while denouncing the evictions of the country poor at the hands of wealthy landowners. In 1766 Goldsmith revealed himself as a novelist with The Vicar of Wakefield (written in 1762), a portrait of village life whose idealization of the countryside, sentimental moralizing, and melodramatic incidents are underlain by a sharp but good-natured irony. In 1768 Goldsmith turned to the theatre with The Good Natur'd Man, which was followed in 1773 by the much more effective She Stoops to Conquer, which was immediately successful. This play has outlived almost all other English-language comedies from the early 18th to the late 19th century by virtue of its broadly farcical horseplay and vivid, humorous characterizations.

During his last decade Goldsmith's conversational encounters with Johnson and others, his foolishness, and his wit were preserved in Boswell's Life of Samuel Johnson. Goldsmith eventually became deeply embroiled in mounting debts despite his considerable earnings as an author, though, and after a short illness in the spring of 1774 he died.

When Oliver Goldsmith died he had achieved eminence among the writers of his time as an essayist, a poet, and a dramatist. He was one “who left scarcely any kind of writing untouched and who touched nothing that he did not adorn”—such was the judgment expressed by his friend Dr. Johnson. His contemporaries were as one in their high regard for Goldsmith the writer, but they were of different minds concerning the man himself. He was, they all agreed, one of the oddest personalities of his time. Of established Anglo-Irish stock, he kept his brogue and his provincial manners in the midst of the sophisticated Londoners among whom he moved. His bearing was undistinguished, and he was unattractive physically—ugly, some called him—with ill-proportioned features and a pock-marked face. He was a poor manager of his own affairs and an inveterate gambler, wildly extravagant when in funds, generous sometimes beyond his means to people in distress. The graceful fluency with words that he commanded as a writer deserted him totally when he was in society—his conversational mishaps were memorable things. Instances were also cited of his incredible vanity, of his constant desire to be conspicuous in company, and of his envy of others' achievements. In the end what most impressed Goldsmith's contemporaries was the paradox he presented to the world: on the one hand the assured and polished literary artist, on the other the person notorious for his ineptitudes in and out of society. Again it was Johnson who summed up the common sentiment. “No man,” he declared, “was more foolish when he had not a pen in his hand, or more wise when he had.”

Goldsmith's success as a writer lay partly in the charm of personality emanated by his style—his affection for his characters, his mischievous irony, and his spontaneous interchange of gaiety and sadness. He was, as a writer, “natural, simple, affecting.” It is by their human personalities that his novel and his plays succeed, not by any brilliance of plot, ideas, or language. In the poems again it is the characters that are remembered rather than the landscapes—the village parson, the village schoolmaster, the sharp, yet not unkindly portraits of Garrick and Burke. Goldsmith's poetry lives by its own special softening and mellowing of the traditional heroic couplet into simple melodies that are quite different in character from the solemn and sweeping lines of 18th-century blank verse. In his novel and plays Goldsmith helped to humanize his era's literary imagination, without growing sickly or mawkish. Goldsmith saw people, human situations, and indeed the human predicament from the comic point of view; he was a realist, something of a satirist, but in his final judgments unfailingly charitable.