He was born at Vaikom in Kerala. Before finishing his primary education, he ran away from home to take part in India's independence movement. He was arrested for participating in the Civil disobedience movement of 1930 inititated by Mohandas Gandhi. Later, for about 10 years he travelled all over India and spent time as an ascetic with Hindu saints and Sufi mystics. After returning to Kerala, he continued to contribute to the independence movement through his writings for which he was jailed many times.
Basheer is known for his unconventional style. An astute observer of human character, he skillfully combines humor and pathos in his works.
The Indian government recognized his contributions to Malayalam literature by awarding him the prestigious Padmashri in 1982.