In writing the novel, Montgomery was inspired by notes she had made as a young girl about two siblings who were mistakenly sent an orphan girl instead of the boy they had requested, yet decided to keep her. She drew upon her own childhood experiences in rural Prince Edward Island, Canada. Montgomery used a photograph of Evelyn Nesbit, which she had clipped from New York's Metropolitan Magazine and put on the wall of her bedroom, as the model for the face of Anne Shirley and a reminder of her "youthful idealism and spirituality."

Montgomery was inspired by the "formula Ann" orphan stories (called such because they followed such a predictable formula) that were popular at the time, but distinguished her character by spelling her name with an extra "e". She based other characters, such as Gilbert Blythe, in part on people she knew. She said she wrote the novel in the twilight of the day, while sitting at her window and overlooking the fields of Cavendish.

The author was a Canadian, best known for a collection of novels, essays, short stories, and poetry beginning in 1908 with Anne of Green Gables. She published 20 novels as well as 530 short stories, 500 poems, and 30 essays. Anne of Green Gables was an immediate success; the title character, orphan Anne Shirley, made Montgomery famous in her lifetime and gave her an international following. Most of the novels were set in Prince Edward Island, and those locations within Canada's smallest province became a literary landmark and popular tourist site - namely Green Gables farm, the genesis of Prince Edward Island National Park. She was made an officer of the Order of the British Empire in 1935.