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Kidder, one of five children, was born in Yellowknife, Northwest Territories, the daughter of Jocelyn Mary "Jill" (nee Wilson), a history teacher, and Kendall Kidder, an explosives expert and engineer. Kidder also spent time growing up in Labrador City, Newfoundland and Labrador. Her mother was from British Columbia, Canada, and her father was from New Mexico, United States. She is of Welsh and English descent.

Kidder made her film debut in a 49-minute film titled The Best Damn Fiddler from Calabogie to Kaladar (1968), a drama set in a Canadian logging community, which was produced by the Challenge for Change. Her first major feature was the 1969 American film Gaily, Gaily, a comedy starring Beau Bridges. She appeared in a number of TV drama series for the CBC, including guest appearances on Wojeck, Adventures in Rainbow Country, and a semi-regular role as a young reporter on McQueen, and as a panelist on Mantrap which featured discussions centered on a feminist perspective. During the 1971-72 season, she co-starred as barmaid Ruth in Nichols, a James Garner western, which aired 22 episodes on NBC.  In the late 1960s, Kidder was based in Toronto, and in 1970, relocated to Vancouver. During an August 3, 1970 interview on The Dick Cavett Show, Kidder stated that she was ambivalent toward having a film career, and was considering working as a film editor in the future. She appeared in "Such Dust As Dreams Are Made On", the first pilot for Harry O which aired in March 1973. She was a guest star in a 1972 episode of the George Peppard detective series Banacek.  After moving to Los Angeles, Kidder was cast opposite Gene Wilder in Quackser Fortune Has a Cousin in the Bronx (1970) as an exchange student in Ireland who becomes the love interest of a poor horse manure collector in Dublin whom she almost runs over with her car. After filming in Ireland, Kidder relocated to New York City to further study acting. A year later, she returned to California, and was cast in the Brian De Palma cult classic Sisters (1973), which gained notoriety for both director and Kidder, who as leading lady, portrayed conjoined twins. Kidder had been in a relationship with De Palma at the time, and had been roommates with co-star Jennifer Salt in Los Angeles. She then starred in the slasher film Black Christmas in 1974, for which she won a Canadian Film Award for Best Actress; followed by a role as a prostitute in the Terrence Malick-scripted The Gravy Train (1974). She received another Canadian Film Award for Best Actress for her performance in the war drama A Quiet Day in Belfast (1974).
Margot Kidder