Born in Havana, Cuba, Bauer moved with his family to the US as a toddler in 1959. Originally intending to become a musician, he turned to acting while attending junior college. While studying, Bauer, then billed as Rocky Echevarria, won his first TV role on the PBS series "Que Pasa U.S.A.?" He was signed by Columbia TV, moved to the West Coast and began appearing in guest shots on shows like "One Day at a Time". In 1980, he landed the regular role of Private Ignacio Carmona on the NBC series "From Here to Eternity".

Moving to NYC, Bauer studied under famed acting teacher Stella Adler and appeared in off-Broadway productions, including a revival of Clifford Odets' "Waiting for Lefty". He changed his name again to Rocky Bauer and landed roles in TV-movies and busted pilots like "She's in the Army Now" (ABC, 1981) and "An Innocent Love" (CBS, 1982). By late 1982, now known as Steven Bauer, he landed the showy role of Manny Ray in "Scarface". Attempting to move into leading roles, he played the title character in Douglas Day Stewart's "Thief of Hearts" (1984), a slick thriller that was not a box-office hit.

Most of his subsequent features have been uneven and relatively unsuccessful. Bauer gave a strong performance as an Afghan rebel in Kevin Reynolds' "The Beast" (1988) and reteamed with Brian De Palma as the unwitting victim of a frame-up in "Raising Cain" (1992). Looking slightly paunchy, he was again cast as an underworld figure in Gregory Hoblit's "Primal Fear" (1996).

Bauer has also continued to amass small screen credits, notably as a one-season replacement for Ken Wahl in "Wiseguy" (CBS, 1990-91). He earned praise as a US drug enforcement agent whose death exposes the South American underworld and government corruption in the Emmy-winning miniseries "Drug Wars: The Camarena Story" (NBC, 1990). He has often played detectives in various TV-movies, ranging from "False Arrest" (ABC, 1991) to "Stranger by Night" (HBO, 1994).