The daughter of professional photographers Lois and Joseph Janney Steinmetz, Duncan began writing at a young age, publishing two early novels under the pen name Lois Kerry. Several of her novels, including Hotel for Dogs (1971), I Know What You Did Last Summer (1973), Summer of Fear (1976), and the controversial Killing Mr. Griffin (1978), have been adapted into films.
In addition to her novels and children's books, Duncan published several collections of poetry and nonfiction, including Who Killed My Daughter? (1992), which detailed the 1989 unsolved murder of Duncan's teenaged daughter, Kaitlyn. She received the 1992 Margaret Edwards Award from the American Library Association for her contribution to writing for teens. After her daughter's murder, Duncan distanced herself from the thriller and horror genres, shifting her focus to picture books and novels aimed for young children. Her last published work, a sequel to Who Killed My Daughter? titled One to the Wolves, was published in 2013.
She spent her early life in Pennsylvania, relocating in her late childhood to Sarasota, Florida, where her parents resumed their employment as circus photographers. In Florida, she spent her youth among circus performers, including The Doll Family. Her experience growing up in this environment eventually served as the basis of her picture books The Circus Comes Home (1993) and Song of the Circus (2002).

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