Cary was born in Tokyo, Japan, the son of an actress from Tokyo and a Japanese-American father who served in the United States Army (stationed at Fort Bragg, North Carolina, Fort Polk, Louisiana and Fort Hood, Texas). He was raised in various cities. He began acting in high school in Southern California. He attended the University of Southern California, and was an exchange student in Japan.
His breakthrough as an actor came when he was cast as the Eunuch Chang in The Last Emperor (1987). In 1989 he posed as an undercover agent of the Hong Kong Narcotics Board in the James Bond film License to Kill. In 1991 he starred alongside Dolph Lundgren and Brandon Lee in the action film Showdown in Little Tokyo, where he played the role of Yakuza boss Yoshida. He also starred alongside James Hong and Jeff Speakman in the same year in the film The Perfect Weapon, where he played Kai, an assistant to the Korean mafia families.
Many will remember him in the movie Mortal Kombat (1995) as the shape-shifting sorcerer Shang Tsung, and as the deadly pirate leader Kabai Singh in The Phantom (1996).
Cary-Hiroyuki Tagawa is among the actors, producers and directors interviewed in the documentary The Slanted Screen (2006), directed by Jeff Adachi, about the representation of Asian and Asian-American men in Hollywood.