Orphaned at an early age, Grahame went to live with his grandmother in England and attended St. Edward's School, Oxford. Money was lacking for him to go to the university; hence his family guided him into a career at the Bank of England, with which he stayed until ill health compelled him to retire in 1907. Meanwhile he contributed articles to such journals as the St. James Gazette and the Yellow Book and published collections of sketches, stories, and essays—Pagan Papers (1893), The Golden Age (1895), and Dream Days (1898)—all of which reveal his sensitive understanding of childhood.

The Wind in the Willows was dramatized by A.A. Milne as Toad of Toad Hall (1930) and became a frequently performed Christmas play.