Behrens attended the Christianeum Hamburg from September 1877 until Easter 1882. He studied painting in his native Hamburg, as well as in Düsseldorf and Karlsruhe, from 1886 to 1889. In 1890, he married Lilly Kramer and moved to Munich. At first, he worked as a painter, illustrator and bookbinder in an artisanal fashion. He frequented the bohemian circles and was interested in subjects related to the reform of lifestyles. In 1899 Behrens accepted the invitation of the Grand Duke Ernst-Ludwig of Hesse to be the second member of his recently inaugurated Darmstadt Artists' Colony, where Behrens built his own Jugendstil style house in 1901, and fully conceived everything, from furniture to towels, paintings, pottery, etc. The building of this house is considered to be the turning point in his life, when he left the artistic circles of Munich and showed himself to be a talented architect in his very first project.

In 1903, Behrens was named director of the Kunstgewerbeschule in Düsseldorf, where he implemented successful reforms, developing new ways of teaching design. In 1907, Behrens and ten other people (Hermann Muthesius, Theodor Fischer, Josef Hoffmann, Joseph Maria Olbrich, Bruno Paul, Richard Riemerschmid, Fritz Schumacher, among others), plus twelve companies, gathered to create the German Werkbund. As an organization, it was clearly indebted to the principles and priorities of the Arts and Crafts movement, but tending towards the classical in architecture. Members of the Werkbund were focused on improving the overall level of taste in Germany by improving the design of everyday objects and products. This very practical aspect made it an extremely influential organization among industrialists, public policy experts, designers, investors, critics and academics. His work in the early 1900s included a series of exhibition halls and pavilions, a crematorium and some private houses, which show a new direction immediately after his own Jugendstil house, towards exploring simple, rectilinear volumes and classical sources.In 1907, AEG (Allgemeine Elektrizitäts-Gesellschaft) retained Behrens as artistic consultant, and his work for AEG was the first large-scale demonstration of the viability and vitality of the Werkbund's initiatives and objectives. He designed the entire corporate identity (logotype, product design, publicity, etc.) and for that he is considered the first industrial designer in history. He also designed a series of factory buildings for them at their two Berlin factory sites, most famously the 1909 AEG Turbine Factory, at the Moabit site, considered an early example of Modernism. He then went on to design four new buildings at the Humboldthain site, which showed that he was as much interested in massive, bold, classical and picturesque effects depending on the context, as expressing modernity. Since Peter Behrens was a consultant rather than an employee of AEG, he was free to work on other projects, and developed a highly successful architectural practice. In this period his growing office had many students and assistants, some who would go on become leading Modernists, including Ludwig Mies van der Rohe, Le Corbusier, Adolf Meyer, Jean Kramer and Walter Gropius (later to become the first director of the Bauhaus).

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