Krauss was born in Vienna, the out-of-wedlock child of Clementine Krauss, then a 15-year-old dancer in the Vienna Imperial Opera Ballet. As a boy, Krauss was a chorister in the Hofkapelle (Imperial Choir). After graduating from the Vienna Conservatory, he made his conducting debut in the Brno Theatre where he held the post of chours master (1912-1913). In 1922 he was apponted assistant to Franz Schalk at the Vienna State Opera. Subsequently he conducted in Berlin and Munich. He became a close friend of Richard Strauss, for whom he wrote the libretto to the opera Capriccio. After the War, Allied officials investigated his pro-Nazi activities and because of them forbade him from appearing in public until 1947. They also found that he had frequently acted to assist a number of individual Jews escape the Third Reich machine. When his ban was lifted he resumed frequently conducting the Vienna Philharmonic, including its famous New Year's Day concerts. He died suddenly during a visit to Mexico city aged 61.

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