Fahey started performing when he won a full scholarship to dance with the Joffrey Ballet at the age of 25. This eventually led to his performing in theaters across the country and on Broadway. He landed his first major role in television playing Gary Corelli on the ABC soap opera One Life to Live.
In 1985, he received his first major role in film, playing the villain Tyree in Silverado. He then in 1986 played a gun dealer named Eddie Kaye in Miami Vice; his character is best known for destroying the Ferrari sports car the two lead characters drove. Also in 1986, he starred in Psycho III.
Since then, he has appeared in a handful of films, most notably playing the title role of Jobe alongside Pierce Brosnan in the cult classic The Lawnmower Man. In 1995 he took the spotlight starring as Winston McBride in ABC's The Marshal.
He also appeared in Grindhouse: Planet Terror. This film is preluded by a fake trailer to a film called Machete starring Danny Trejo, in which Jeff Fahey portrays Machete's employer. Although it was intended to only be a fake trailer, it has been announced that Robert Rodriguez will actually make a feature length version of the film, to be released in cinemas in the future. Fahey plays a prominent role in the trailer, so it's very likely he will reprise his role in the upcoming film. he also acted as a tough,funky, and sexy gangsta in step up from the streets.
He recently played the character Frank Lapidus, the helicopter pilot of the research team sent to the island, in the fourth season of Lost.