Yen was born in Guangzhou, China. His mother, Bow-sim Mark, is a Fu Style Wudangquan (internal martial arts) and Tai Chi grandmaster, while his father, Klyster Yen (Zhen Yun Long ), is a newspaper editor. When he was two years old, his family moved to Hong Kong and then to Boston when he was 11. His younger sister, Chris Yen, is also a martial artist and actress, and appeared in the 2007 film Adventures of Johnny Tao: Rock Around the Dragon.

Donnie Yen was considered as one of the premiere action choreographers in the world, having been invited by Hollywood to choreograph blockbusters such as Blade II, Highlander: Endgame, and Shanghai Knights. In Asia, he is the action choreographer for most of his movies and has won multiple awards for his action choreography.  Yen's most famous works include films such as Flash Point and SPL: Sha Po Lang. He has mentioned that the main differences in filmmaking in Asia and Hollywood are with regards to freedom and control. In Asia, the action choreographer takes over the scene during the fight scene. This means that for action scenes filmed in Asia, the choreographer becomes the director and is in full control over camera placements, camera angles, and the relationship between the drama and the action; therefore the main director is not needed at all. While in Hollywood, on the other hand, Yen explains that the action choreographer simply choreographs the actions with the director, who still maintains full control of such settings and camera angles.  Yen's work as a choreographer won him "Best Action Choreography" awards at the 27th Hong Kong Film Awards and the 2008 and 2011 Golden Horse Film Awards.  Yen was the fight choreographer for the 2010 film Legend of the Fist: The Return of Chen Zhen. For this film, Yen mentioned that he included Jeet Kune Do elements as a tribute to Bruce Lee, who played Chen Zhen in the 1972 film Fist of Fury. Furthermore, he incorporated many MMA elements in the film, coupled with the utilisation of Wing Chun. Yen also stated that the concept behind Bruce Lee's Jeet Kune Do is similar to that of MMA, hence the incorporation of many forms of martial arts was a necessity in the film. He won the Hong Kong Film Award for Best Action Choreography 4 times, being one of the most frequent winners of this coveted award. He has won awards for his choreography in films such as The Twins Effect, SPL: Sha Po Lang, Flash Point, and Kung Fu Jungle. Although uncredited, Donnie Yen was also action co-choreographer for Hong Kong Film Award winners such as Ip Man, Ip Man 2, and Bodyguards and Assassins.

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