In 1967, Murray moved to New York City, and first exhibited in 1971 in the Whitney Museum of American Art Annual Exhibition. One of her first mature works included "Children Meeting," 1978 (now in the permanent collection of the Whitney Museum), an oil on canvas painting evoking human characteristics, personalities, or pure feeling through an interaction of non-figurative shapes, colour and lines. She is particularly noted for her shaped canvas paintings.
In 2007, Murray died of lung cancer. In her obituary, The New York Times wrote that Murray "reshaped Modernist abstraction into a high-spirited, cartoon-based, language of form whose subjects included domestic life, relationships and the nature of painting itself..." The Bowery Poetry Club held a Praise Day in her honor on August 30, 2007, with artists Brice Marden and Joel Shapiro, writers Jessica Hagedorn and Patricia Spears Jones, and choreographers Elizabeth Streb and Yoshiko Chuma among the attendees; Artforum described the event as "a blend of the poignant and the comic that threatened to bring it closer to a Saturday Night Live skit shredding avant-garde performance practice than an actual art-world remembrance."  A second private memorial was held at the Museum of Modern Art later that fall. Murray was survived by her husband, Bob Holman, and three children: daughters Sophia Murray Holman and Daisy Murray Holman, and son Dakota Sunseri.
The Murray-Holman Family Trust is represented by the Pace Gallery in New York.
After Murray's death, the A G Foundation, Columbia University, and the Archives of American Art established the “Elizabeth Murray Oral History of Women in the Visual Arts Project,” to honor her memory. "It seems so right to honor Elizabeth Murray by archiving the lives, the thoughts, the dreams and goals of other women who—like herself—persisted in the visual arts, extending and enriching the world through their work," said the A G Foundation's Agnes Gund.
^Aptowicz, Cristin O'Keefe. (2008). Words in Your Face: A Guided Tour Through Twenty Years of the New York City Poetry Slam. "CHAPTER 26: What the Heck Is Going On Here; The Bowery Poetry Club Opens (Kinda) for Business." Soft Skull Press. ISBN 1-933368-82-9.