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She began modeling at age 15 and signed with Ford Agency. Her early struggles with stuttering led her to become introverted, though she found that acting helped her overcome this challenge.

Her breakthrough came with The Mod Squad, where she played Julie Barnes, one of three hippie undercover cops. The show was groundbreaking for its time, addressing contemporary social issues and featuring an interracial cast. Her performance earned her four Emmy nominations and a Golden Globe Award.

In 1974, she married music producer Quincy Jones, making them one of the most prominent interracial couples in the entertainment industry at that time. They had two daughters: Kidada Jones (born 1974) and Rashida Jones (born 1976). After marrying Jones, Lipton largely stepped away from acting to focus on her family. They divorced in 1989.

She returned to acting, performing in many TV roles, including Norma Jennings in David Lynch's Twin Peaks.

She passed away in 2019 at age 72 from colon cancer. Her memoir "Breathing Out" (2005) detailed her life experiences, including her battles with anxiety and her journey in the entertainment industry.

She is remembered as a cultural icon of the 1960s and early 1970s, particularly for her role in The Mod Squad, which helped break down racial barriers on television.