Danny Sanderson was born on Kibbutz Kfar Blum, to parents who had recently made aliyah from the US. The family eventually moved to Haifa. In 1960 he was relocated by his family to New York City, due to his father's appointment as director of El Al's North America dept., in New York City.
He attended the famed High School of Music and Art, in New York City. In 1965, at the age of 15, he started his first band, and at that time wrote his first popular song.
In April 1978, he married Neomi.
In 1971, after his release from the Israel Defense Forces, Sanderson played with the Schnitzelim Band. He recorded "The Left-handed Octopus" with the Egyptian-born musician Zouzou Moussa and the orchestra of Israel Radio Arabic.
After a short bout in London, Sanderson returned to Israel and founded a new band, Kaveret, with Alon Oleartchik, Ephraim Shamir, Gidi Gov, Meir Fenigstein and, later on, Yoni Rechter and Yitzhak Klepter. The band broke up in 1976.
Sanderson took a break from music to write a nonsense book (Nekhira Pumbit, נחירה פומבית, A Public Snore), musically produced a stand-up/music show for Yehonatan Geffen. He went on to create another band called Gazoz, which produced two albums, and Doda (דודה, Aunt), which had a heavier rock sound.
Sanderson rebounded with his first solo album and solo show, and went on to create two other albums and solo shows in 1984 and 1987. His next album, Kofetz Leshni'ya (קופץ לשנייה, Just popped in for a second) from 1991 was a more mature and musically sophisticated achievement but less commercially successful than his solo albums. The Israeli audience, enamored with Sanderson's blend of humor, jokes and lighthearted music, was willing to accept Sanderson's brilliant music only when masqueraded as 'simple pop', but was much less enthusiastic about more earnest musical attempts.
Sanderson made two more albums in the 1990s, then an album of his songs sung by others (2001) and a melancholy album (2006) called Congo Blue (קונגו בלו), which coincided with the death of his wife, Neomi. Sanderson also released several compilation albums and participated in two albums commemorating reunion shows of Kaveret.
In 2007, famed Israeli punk rock singer and bassist Yotam Ben-Horin (of Useless ID) started touring with Sanderson as a touring bassist. He has since also become a session bassist for Sanderson and an official member of his solo band. In 2009, Ben-Horin sang on one of the new tracks on Sanderson's upcoming album Lo Yafrid Davar (לא יפריד דבר, "Nothing Will Separate [Us]").Begodel Tiv'i (בגודל טבעי, In natural size) (1982)
Haf Mi'pesha (חף מפשע, Not Guilty) (1984)
Hacham al Ktanim (חכם על קטנים, Smart ass) (1987)
Kofetz Leshni'ya (קופץ לשנייה, Just popped for a second) (1991)
Met Livkot 2 (מת לבכות 2, Dying to cry) (1994)
Ha'lo Noda (הלא נודע, The Unknown) (1997)
Congo Blue (קונגו בלו, Congo Blue) (2005)
Lo Yafrid Davar (לא יפריד דבר, Nothing Will Separate) (2009)
Ha'tovim le Tayis - Nivheret Shirim (הטובים לטייס – נבחרת שירים, The Best for flying) (1992)
Ha'meitav (המיטב, The Best) (2006)