She was a member of the first freshman class of the University of the Philippines, graduating with a Bachelor of Arts degree in 1912.
Two years after graduation, she married Francisco Benitez, with whom she had four children.
Márquez-Benítez later became a teacher at the University of the Philippines, who taught short-story writing and had become an influential figure to many Filipino writers in the English language, such as Loreto Paras-Sulit, Paz M. Latorena, Arturo B. Rotor, Bienvenido N. Santos and Francisco Arcellana. The annually held Paz Marquez-Benitez Lectures in the Philippines honors her memory by focusing on the contribution of Filipino women writers to Philippine Literature in the English language.
Though she only had one more published short story after “Dead Stars.”This of which is entitled "A Night In The Hills". Nevertheless, she made her mark in Philippine literature because her work is considered the first modern Philippine short story.
For Marquez-Benitez, writing was a life-long occupation. In 1919 she founded "Woman's Home Journal", the first women's magazine in the country. "Filipino Love Stories", reportedly the first anthology of Philippine stories in English by Filipinos, was compiled in 1928 by Marquez-Benitez from the works of her students.
When her husband died in 1951, she took over as editor of the Philippine Journal of Education at UP. She held the editorial post for over two decades.
In 1995, her daughter, Virginia Benitez-Licuanan wrote her biography, "Paz Marquez-Benitez: One Woman's Life, Letters, and Writings."