Marshall was born October 15, 1942 in The Bronx, New York City, the daughter of Marjorie Irene (née Ward), a tap dance teacher who ran a dance school, and Anthony Wallace Marshall, a director of industrial films and later a producer.

She is the sister of actor/director/TV producer Garry Marshall and Ronny Hallin, a TV producer. Her father was of Italian descent, his family having come from Abruzzo, and her mother was of English and Scottish descent; her father changed his last name from "Marsciarelli" to "Marshall" before Penny was born.

Penny Marshall's Family Tree