Lin, the son of a Chinese Presbyterian minister, was educated for the ministry but renounced Christianity in his early 20s and became a professor of English. He traveled to the United States and Europe for advanced study; on his return to China, he taught, edited several English-language journals, and contributed essays to Chinese literary magazines.

In 1932 Lin established the Lunyu banyuekan (“Analects Fortnightly”), a type of Western-style satirical magazine totally new to China at that time. It was highly successful, and he soon introduced two more publications. In 1935 Lin published the first of his many English-language books, My Country and My People. It was widely translated and for years was regarded as a standard text on China. The following year he moved to New York City to meet the popular demand for his historical accounts and novels. In 1939 he published his renowned English novel Moment in Peking. The Wisdom of China and India appeared in 1942.

Although he returned to China briefly in 1943 and again in 1954, Lin both times became involved in disputes stemming from his stand in favour of literature as self-expression rather than as propaganda and social education. In addition to writing books on Chinese history and philosophy, he made highly acclaimed English translations of Chinese literary masterpieces, such as Famous Chinese Short Stories Retold (1952).