Rabbitt was born to Irish immigrants Mae (nee Joyce) and Thomas Michael Rabbitt in Brooklyn, New York in 1941, and was raised in the nearby community of East Orange, New Jersey. His father was an oil-refinery refrigeration worker, and a skilled fiddle and accordion player, who often entertained in local New York City dance halls. By age twelve Rabbitt was a proficient guitar player, having been taught by his scoutmaster, Bob Scwickrath. During his childhood Rabbitt became a self-proclaimed "walking encyclopedia of country music".

While he was still relatively unknown, Rabbitt toured with and opened for crossover star Kenny Rogers, and also opened for Dolly Parton on a number of dates during her 1978 tour, but soon Rabbitt would himself break through on other charts. Following the 1978 release of Variations, which included two more No. 1 hits, Rabbitt released his first compilation album, The Best of Eddie Rabbitt. The album produced Rabbitt's first crossover single of his career, "Every Which Way But Loose", which topped Country charts and reached the top 30 on both the Billboard Hot 100 and Adult Contemporary, and was featured in a 1978 Clint Eastwood movie of the same name. The song also broke the record for highest chart debut, entering at No. 18. Rabbitt held this record until it was shared with Garth Brooks at the debut of Brooks' 2005 single "Good Ride Cowboy." The record was broken in 2006 upon the No. 17 chart entrance of Keith Urban's "Once in a Lifetime." Rabbitt's next single, the R&B flavored "Suspicions" from his 1979 album Loveline, was an even greater crossover success, again reaching number one on Country charts and the top 15 on the Billboard Hot 100 and Adult Contemporary. He was given his own television special on NBC, first airing on July 10, 1980, which included appearances by such performers as Emmylou Harris and Jerry Lee Lewis. By this point in his career Rabbitt had been compared to a "young Elvis Presley."  Rabbitt's next album Horizon, which reached platinum status, contained the biggest crossover hits of his career including "I Love a Rainy Night" and "Drivin' My Life Away." Rabbitt developed "Rainy Night" from a song fragment that he penned during a 1960s thunderstorm. "Driving" recalled Rabbitt's tenure as a truck driver, and was inspired by Bob Dylan's song "Subterranean Homesick Blues" from Dylan's 1965 album Bringing It All Back Home. His popularity was so strong at this point that he was offered his own variety television show, which he went on to respectfully decline stating "It's not worth the gamble."  The release of his 1981 Step by Step album continued Rabbitt's crossover success as all three singles reached the top 10 on both Country and Adult Contemporary charts. The title track became Rabbitt's third straight single to reach the top 5 on Country, Adult Contemporary and the Billboard Hot 100 charts. The album ultimately reached gold status, Rabbitt's final album to do so. He teamed up with another country pop crossover star, Crystal Gayle, to record "You and I", which was included in his 1982 album Radio Romance. The duet reached No. 1 on the Billboard Country chart and eventually became a large pop smash, peaking at No. 7 and No. 2 respectively on the Billboard Hot 100 and Adult Contemporary chart. The song's popularity reached the point where it was used as a love theme for a couple on the soap opera All My Children. The song "You Put the Beat in My Heart" from Rabbitt's second Greatest Hits compilation in 1983 was his final crossover hit, reaching No. 15 on the Adult Contemporary chart.

any other duets