Xun Yu was from Yingchuan Commandery (around present-day Xuchang, Henan), and was born into a family of government officials.

Xun Yu proved to be a talented youth and was evaluated by the scholar He Yong as "someone capable of assisting kings" (王佐之才).

When the warlord Dong Zhuo seized control of the capital Luoyang, Xun Yu feared for his safety and resigned, returning to Ji Province (present-day Hebei).

Two of Cao's officials, Chen Gong and Zhang Miao, chose to defect to Lü Bu.

Subsequently, on the death of Tao Qian, Cao Cao was tempted to turn around and move to Xu Province before returning to deal with Lü Bu; it was Xun Yu who dissuaded him from this, reminding him that Yan Province was his heartland and power base and should be secured first before launching campaigns abroad.

While there, Xun Yu was said to have fallen sick and was brought to Shouchun (寿春; present-day Shou County, Anhui) for treatment and recuperation.

[6] In Koei's video game Dynasty Warriors 7: Empires, fans voted in the Facebook and Twitter poll for one of the new officers to have the name Xun Yu.

He is shown opening a container in his artwork and wearing traditional clothing for an advisor from the Han dynasty.