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Theodore Raimi was born in Detroit, Michigan, as a son of Celia Barbara (nee Abrams), a lingerie store proprietor, and Leonard Ronald Raimi, a furniture store proprietor. When he was young, Bruce Campbell was his babysitter. Raimi attended University of Michigan, New York University, then finally University of Detroit before graduating. He began acting as an extra in his elder brother, director Sam Raimi's Super 8 films. His eldest brother, Ivan Raimi, a doctor, is also involved in the film industry as a screenwriter and occasional contributor to Sam's movies. Ted also has an older sister Andrea Raimi Rubin who is currently a court reporter

Raimi's motion picture credits include most of his brother Sam's films, including The Evil Dead, Evil Dead 2, Army of Darkness, Darkman and the Spider-Man series, as well as roles in such features as Patriot Games, Clear and Present Danger, Lunatics: A Love Story, Skinner, Shocker, Born Yesterday and Stuart Saves his Family. He is known for his roles as the communication officer Lt. j.g. Tim O'Neill on the science fiction television series seaQuest DSV (later seaQuest 2032) and the warrior wannabe Joxer the Mighty on Xena: Warrior Princess. He also provided the voice of the character "Invader Skoodge" in the animated series "Invader Zim". His character on seaQuest DSV, Lt. Tim O'Neill, was originally named "Mack O'Neill". Several early promo photos still have the original name visible on his costume. Raimi wrote the original "Joxer The Mighty" song in Xena.