Furler was born in McLaren Vale, South Australia on 8 September 1966, the third of six children of missionaries Bill and Rosalie Furler. Furler formed the Newsboys, with friends George Perdikis, Sean Taylor, and John James. He has written and produced most of Newsboys' songs, as well as co-writing/producing songs for other recording artists. He also frequently collaborated with Steve Taylor. Furler was originally the band's drummer but became the band's lead singer after the departure of John James in 1997.
In July 1999 Furler, along with fellow Australians Dale Bray and Wes Campbell, founded Inpop Records.
In 2009 Furler left the Newsboys and began pursuing a solo career. Peter Furler continued to make special appearances on tour with the band up until his final appearance on 11 September 2009, in Orlando, Florida.
Furler played drums for Phil Joel's latest album deliberateKids2.
He released his debut solo album, On Fire, on 21 June 2011 . The first single from the album, "Reach", was released to radio 25 March 2011 for sale on 19 April 2011. Furler was on the Winter Jam 2012 tour.
In 2010, Furler became the drummer for longtime Newsboys songwriting collaborator Steve Taylor's new band Steve Taylor & The Perfect Foil. Their album, Goliath, was released on 18 November 2014.
Peter Furler formed the Peter Furler Band in 2012, which includes Dave Ghazarian (formerly of Superchick and Audio Adrenaline) on bass and Jeff Irizarry on drums. Their album, Sun and Shield, was released on 11 March 2014.
In 2014, Furler released his first Christmas album, on which he collaborated with pianist/guitarist David Ian. The album, entitled Christmas, was released 7 October 2014.
In 2017, Furler collaborated with the Newsboys again for a single entitled "The Cross Has The Final Word".
He married Summer Andrea LeFevre, daughter of musician Mylon LeFevre, on 12 March 1991.
He is the cousin of singer-songwriter Sia.