Thompson was born in Pasadena, California, on July 11, 1953. His parents were James G. Thompson and Doris K. Thompson. Thompson attended the University of California, Los Angeles, where he majored in English and journalism. After college, Thompson worked as a journalist for several newspapers and magazines in Los Angeles.
In 1980, Thompson founded the literary magazine "The Portable Lower East Side." The magazine published the works of many notable writers, including Charles Bukowski, Allen Ginsberg, and William S. Burroughs. In 1984, Thompson moved to New York City, where he continued to work as a writer and journalist. He died of AIDS on October 23, 1991.
Thompson's published books include:
- "The Portable Lower East Side" (1980)
- "Dolls" (1983)
- "The East Side Poems" (1985)
- "The Kid: A Novel" (1987)
- "The Collected Works of Gary James Thompson" (2002)