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Kruger was born Diane Heidkruger in Algermissen, Germany, near Hildesheim. She is the daughter of bank employee Maria-Theresa and computer specialist Hans-Heinrich Heidkrüger. She was raised in Germany with her younger brother, Stefan. As a child, Kruger wanted to become a ballerina, so her parents sent her to London to study with The Royal Ballet. After an injury ended her ballet career prematurely, Kruger moved to Paris and turned her energies toward modeling.

In 1992, at the age of 16, Kruger was a finalist in Elite's "Look of the Year" competition. She returned to Germany and became a successful model in the mid-1990s in Germany and France. Her education in art led her to be able to speak nearly fluent English and French, in addition to her mother tongue, German.

Kruger soon became interested in acting and took lessons at the Cours Florent. She landed some small appearances in several French films. She then shortened her surname to ease her film career.

She made her onscreen debut in 2002 opposite Dennis Hopper and Christopher Lambert in The Piano Player, a TV-movie by Jean-Pierre Roux. Her first major role was the same year when she starred in her then husband's directorial debut "Mon Idole". She played Julie Wood in 2003's Michel Valliant and Lisa in Wicker Park (2004), alongside Josh Hartnett and Rose Byrne. Her most notable role to date is her portrayal of Helen in Wolfgang Petersen's epic Troy. She was ranked #50 on the Maxim Hot 100 Women of 2005.

In 2004, Kruger starred with Nicolas Cage and Sean Bean (who co-starred with her in Troy) in the popular film National Treasure, going on to appear in movies such as Joyeux Noël (2005) and Copying Beethoven (2006). She reprised her role as Dr. Abigail Chase in National Treasure: Book of Secrets, released in December 2007.

Kruger was the hostess of the opening and closing ceremonies of the 60th Cannes Film Festival. She was also a member of the jury of the 59th Berlin International Film Festival in 2008.

After having dated since 1999, she married French actor and director Guillaume Canet on September 1, 2001. They divorced in 2006, but acted alongside one another in Joyeux Noël. She is currently dating Joshua Jackson.