Sheridan was born in Dublin, the son of Anna and Peter Sheridan, an actor and railroad worker. Sheridan was initially educated by the Irish Christian Brothers and later graduated from University College Dublin. He emigrated to Canada and then New York City in 1981.

In 1979 Jim, or Shay Sheridan wrote two plays. The first, an Irish beggar's opera called "The Ha'penny Place", was staged in the Project Arts Centre, and the second, a piece of agitprop theatre called "The Last Post", was staged nearby in Connolly Hall. Interestingly, an actor called Jer O'Leary, a long time friend and political associate of Jim's, appeared in both these plays, and went on to appear in small parts in almost all of Sheridan's pictures. In 1989, he directed My Left Foot, which became a critical and commercial success and won Daniel Day-Lewis and Brenda Fricker Academy Awards. He followed that with The Field (with Richard Harris) in 1990; then with In the Name of the Father in 1993, a fictionalized re-telling of the case of the Guildford Four. In 1996 he co-wrote Some Mother's Son with Terry George. The Boxer (with Daniel Day-Lewis) was nominated for a Golden Globe for best film drama in 1997. In 2003, he released the semi-autobiographical In America, which tells the story of a family of Irish immigrants trying to succeed in New York. The film received positive reviews and earned Samantha Morton and Djimon Hounsou Academy Award nominations. In 2005 he released Get Rich or Die Tryin', a film starring rap star 50 Cent. He is connected with the upcoming film adaptation of Artemis Fowl and is rumoured to have written the screenplay and been asked to direct it.

Sheridan helmed the 2009 film Brothers, starring Tobey Maguire and Jake Gyllenhaal, which was shot in New Mexico. He also directed the thriller Dream House, which stars Daniel Craig, Naomi Watts and Rachel Weisz.

Sheridan has three daughters, Naomi Sheridan, Kirsten Sheridan and Tess Sheridan, with whom he has collaborated, most notably with Naomi and Kirsten on the screenplay for In America.

Academy Awards

British Academy Awards

Golden Globes

Independent Spirit Awards

National Board of Review

Writers Guild of America