Stacy Ferguson was born to parents Terri and Pat Ferguson who were of Irish, Scottish and Native American descent. As a child actress, she appeared on the television program Kids Incorporated for several years with Renee Sands, who herself would become another member of Wild Orchid. Her well-scrubbed image on that show presents quite a contrast with the ghetto-funk image she has more recently begun to cultivate. Ferguson was the voice of Sally Brown in two Charlie Brown specials: It's Flashbeagle, Charlie Brown (1984) and Snoopy's Getting Married, Charlie Brown (1985). She has one sister, Dana Ferguson, who is an actress.

Later, Ferguson was a member of the female trio Wild Orchid which she fronted with fellow Kids Incorporated star Renee Sands and Stefanie Ridel. Wild Orchid released two albums, but after completing a third album, their record label declined to release it. This prompted an emotional crisis, and Stacy sought therapy. She left the group shortly thereafter.

Her disappointment with Wild Orchid led to an addiction to ecstacy and crystal meth. She told a Glasgow paper: "I started doing Ecstasy. Then I got addicted to crystal methamphetamine. My weight dropped to 90 lb so I lied to my friends and said I was bulimic. Finally, I started going crazy."

On July 2003, she had a guest role on the Rocket Power special, Reggie's Big Beach Break, on Nickelodeon, voicing a fictitious pop music star named Shaffika.