Strauss starred in the films Soldier Blue (1970) and Spacehunter: Adventures in the Forbidden Zone (1983), and has appeared in several others. He voiced Justin, the Captain of the Guard, in the 1982 animated film The Secret of NIMH. Strauss starred as an abused husband in the television movie Men Don't Tell, alongside Judith Light. He both wrote and performed the song Ripped Pants in the 1999 episode of SpongeBob SquarePants titled "Ripped pants". In 2005, he played the U.S. President in the thriller XXX: State of the Union. He was the voice of Moses in the animated series K10C: Kids' Ten Commandments. He starred in the short-lived series Body & Soul as Dr. Isaac Braun in 2002. He provided the voice for Stoker Van Rotten in both the 1990s and 2006 versions of Biker Mice From Mars.

He played Abel Roznovski in the miniseries Kane and Abel, based on Jeffrey Archer's book. He won an Emmy Award for his role on the 1979 made-for-television movie The Jericho Mile, and he starred in a television remake of the classic 1946 film Angel on My Shoulder in 1980. His other noted television miniseries credits include starring roles in Rich Man, Poor Man, its sequel Rich Man, Poor Man Book II, and Masada. Strauss plays Joseph P. Kennedy, Jr. in the 1977 TV movie Young Joe, the Forgotten Kennedy. In 1973, he portrayed Stephen Linder, the eight-year younger boyfriend to Mary in the Mary Tyler Moore Show fourth-season episode, "Angels in the Snow".

Strauss was born in Croton-on-Hudson, New York, the son of Warren B. Strauss, a wine importer. His family was Jewish. Strauss graduated from the Hackley School in 1965 and Northwestern University in 1969. He married Rachel Ticotin on December 31, 1998. Strauss runs a successful citrus production Business and is on the advisory board of the Los Angeles County Arboretum and Botanic Garden. He sold a ranch property to the Santa Monica Mountains Conservancy. The ranch has since been acquired by the National Park Service as the Peter Strauss Ranch.