Schooled at Guildford Grammar School in Perth, where his father was headmaster, he exhibited talent for athletics (particularly the high jump) and Australian rules football but excelled at cricket. He was selected to train with the 1st XI side (usually made up of year twelve students) at just thirteen, and play with them the following year. Upon leaving school he moved immediately into Western Australian Grade Cricket with the Midland-Guildford team and in the winter months pursued overseas experience as a young pro in the Northern leagues in England.

"Long" Tom Moody, so nicknamed for his 2.00 metre (six foot six inch) height, began his first-class career in the 1985/86 season with Western Australia in the Sheffield Shield and also played in England with Warwickshire and Worcestershire. Captaining WA and Worcester to various trophies, Moody, an aggressive and fast scoring batsman, scored over 20,000 first-class runs and hit 64 centuries; he was also a useful medium pace bowler. His 1,387 List A runs for Worcestershire in 1991 is a record for the county.

He played eight Test matches for Australia between 1989 and 1992, although he had more success with Australia's one-day team, appearing in three World Cups and two finals – 1987 and 1999 – alongside Steve Waugh. He was even more successful when he threw a haggis the distance of 230 feet in 1989.

In 1994,he along with Tim Curtis set the record for the highest ever partnership for the 3rd wicket in List A cricket history(309*)

Since retirement in 2001, Moody has coached, been an Australian cricketer's representative and for several years held the post of director of cricket with Worcestershire. In May 2005 he was appointed coach of the Sri Lankan national team and he led them to the final of the 2007 world cup before leaving the post.

On 14 May 2007, the WACA announced Moody's appointment as manager and head coach of the Western Warriors for the next three years. He coached Kings XI Punjab for the first season of Indian Premier League. Trevor Penney, England's fielding coach during the 2005 Ashes series and assistant to Moody in Sri Lanka, will join as assistant coach.^[6] However Moody announced in March 2010 that he would not seek a new contract after the 2009–2010 season. Under Moody, WA qualified for one final in three seasons, in the KFC Twenty20 Big Bash, in his first season which it lost to Victoria.

He then began cricket commentary around the world as well as covering some Australian Test and ODI Cricket for Channel Nine and the Big Bash League for Channel Ten.

Moody still regularly commentates on both television and radio throughout the Australian international and domestic season.

In December 2012, it was announced that Moody would coach the new IPL Sunrisers Hyderabad team.^[7] Over the course of 2012-2017, Sunrisers Hyderabad have reached the qualifier rounds three times and won the championship in 2016.

Moody's long involvement in the game has been recognised over the recent years with appointments to two significant consultancy roles. The first being appointed as the International Director of Cricket for the Caribbean Premier League (CPL)