Williams rose to prominence appearing in such films as Stir Crazy (1980), Poltergeist (1982), The Big Chill (1983), The Day After (1983), Teachers (1984), and Poltergeist II: The Other Side (1986). A three-time Emmy Award nominee, she was nominated for Outstanding Lead Actress in a Miniseries or a Movie for her work in the TV movie Adam (1983) and the TV miniseries Baby M (1988). Her third nomination was for her guest role in the sitcom Frasier (1994). She also starred in the TV series The Client (1995–96) and had recurring roles in the TV series Dexter (2007) and Private Practice (2009–11).
Williams was born in Houston, Texas, and is the daughter of Frances Faye (née Adams), a dietitian, and Fredric Roger Williams, an opera singer and manager of a wire and cable company. Williams grew up in the South Park neighborhood of Houston, and attended Jones High School, from which she graduated in 1966.
Williams's first television role was on the Boston-produced first-run syndicated children's television series Jabberwocky, which debuted in 1972. Her character was named JoBeth. She joined the Jabberwocky cast in season two, replacing the original hostess, Joanne Sopko. The series ran until 1978. She was a regular on two soap operas, playing Carrie Wheeler on Somerset and Brandy Shelloe on Guiding Light. Williams's feature-film debut came in 1979's Kramer vs. Kramer as a girlfriend of Dustin Hoffman's character, memorably quizzed by his son after being discovered walking nude to the bathroom.

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