Friedrich Hollaender was the son of the composer Victor Hollaender, who composed shows in Berlin in the 1890s to 1910s. Frederick received early musical training, since 1913 he was student of opera composer Engelbert Humperdinck (who composed Hänsel und Gretel). He started as repetitor at a theater in Prague, and became - despite his classical training which likely would otherwise have led to a career as classical composer - an important composer of shows and cabaret songs in Berlin in the 1920s. He started working for the UFA movie Der blaue Engel (1930). By chance, an actress wanted him as pianist for her audition for that movie - but he got the job as composer, while the role went to Marlene Dietrich. He directed the Lilian Harvey movie Ich und die Kaiserin (1933) in all three versions (German/French/English).

After the Nazis came to power on January 30, 1933 he immigrated via France and England to Hollywood, where he got a three months contract. There, he wrote songs and scores for various movies. RKO signed him as director for the western film "Bullets and Ballots". After the decline of musicals in the mid-1950s he returned in 1956 to Germany, where he continued working for shows and cabaret, this time in Munich. As composer/lyricist he retired in the 1960s, but he kept writing books until the 1970s.