She hosted the first activities of the Society for Creative Anachronism, and was subsequently among that group's founding directors and corporate officers when it incorporated.

[5] A leader in the neopagan and heathen revivals, Paxson is the founder of The Fellowship of the Spiral Path[6] and has served as First Officer of the Covenant of the Goddess.

"Through unanimous vote by the Board of Directors, Diana Paxson is removed from all positions, including Elder, Clergy, and Membership status with The Troth.

What we should be doing is honoring what people manage to achieve despite their flaws” when referring to Marion Zimmer Bradley and her husband Walter Breen who were both accused of child sexual abuse.

On December 8, 2023, both she and her son Ian Grey were stabbed in their Berkeley home by a family member, who was arrested and charged with attempted murder.