Parsons was born in Los Angeles, California to a Black mother, Louise, and a White father. She attended Santa Monica High School.

Parsons is known for her role as Hillary Banks on the sitcom The Fresh Prince of Bel-Air, which ran from 1990 to 1996. She was cast to co-star in the sitcom Lush Life in 1996 which only lasted four episodes before it was cancelled.

Parsons has also appeared in such films as Class Act, Major Payne and The Ladies Man. She also starred in The Job with Denis Leary.

Parsons' current project is Sweet Blackberry, producing a line of DVD animated films about notable unsung African-American heroes. The first in the series is about Henry Box Brown, a slave who mailed himself to freedom.

Parsons has been married to director Alexandre Rockwell since February 8, 2003 and they have one daughter together. She was previously married to Randy Brooks, with whom she has two sons, however they were divorced in the early '90s.