McNichol was born on September 11, 1962, in Los Angeles, California, the daughter of James and Carolyn McNichol. Her father was a carpenter and her mother worked odd jobs to support the family, including as a secretary, cosmetics salesperson and movie extra. McNichol is Scottish/Irish on her father's side and her mother is of Lebanese descent.
She appeared with her brother Jimmy McNichol in commercials and later, on her own, in guest appearances on such other series as Starsky & Hutch; The Bionic Woman; Love, American Style; and The Love Boat, thanks to family friend Desi Arnaz. Her first stint as a series regular came in the role of Patricia Apple in the short-lived television series Apple's Way (1974).
In 1976, she was cast as Letitia "Buddy" Lawrence in the television drama series Family (1976–80). She was nominated for the Emmy Award for Best Supporting Actress in a Dramatic Series three years in a row (1977–79), winning in 1977 and 1979.

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