Born in Huddersfield, Parratt began to play the organ from an early age, and held posts as an organist while still a child. He became one of the foremost organ teachers of his day, with many important posts in Britain being filled by his students.
He was knighted in 1892, became chair of music at Oxford University in 1908, taking over from Hubert Parry. In 1893 was appointed Master of the Queen's Musick.
After Parratt's death in 1924 a monument to him was erected in the grounds of Huddersfield parish church.
Donald Francis Tovey and Geoffrey Parratt wrote a biography of Parratt entitled Walter Parratt: Master Of The Music.