Adams was born in Washington, D.C., the daughter of Janice, an administrative assistant, and William Adams, an engineer.[1] She was raised in Wheaton, Illinois and Bellevue, Washington. Adams attended the University of Washington, where she studied political science, and the Cornish College of the Arts, where she took theater. In 1989, she graduated from the Juilliard school with a degree in drama.

Adams then performed theatre at the Seattle Repertory Theatre. She won a Tony Award for best performance by an actress in a play for the Broadway play, "An Inspector Calls". She also won the Outer Critics Circle Award for best featured actress in a play in the Broadway play, "I Hate Hamlet". In 1998 she starred in Happiness with Oscar winner Philip Seymour Hoffman. She and the cast won many ensemble awards. The next year Adams got a recurring role on the hit comedy series Frasier. She played Dr. Mel Karnofsky, Niles's second wife. She was on the show between 1999 and 2000. In 2001 she was in an Independent film, Songcatcher, with Oscar nominee Janet McTeer. She and the cast won a Sundance Special Jury Prize. She since has worked in minor and supporting roles in movies. In 2007, she appeared in The Sensation of Sight and The Brave One opposite Jodie Foster, Naveen Andrews, Terrence Howard, and Mary Steenburgen. She is currently co-starring in the HBO drama Hung.