Daneel is a robot constructed by Spacers from planet Aurora to be indistinguishable from a human being (see android). This enables him to help earth-policeman Elijah Baley to solve crimes. (Daneel and Baley first meet while Baley is investigating the murder of Roj Nemennuh Sarton, the human from whom Daneel is indistinguishable.)

Daneel and Baley also worked together on a murder case on Spacer planet Solaria, and on a case of 'robocide' of Daneel's 'brother', Jander Panell, on Aurora, where he also first meets R. Giskard Reventlov, a robot with unique telepathic powers. Giskard and Daneel invented the Zeroth Law of Robotics, which proved destructive to his positronic brain, as he violated the First Law. Giskard bestowed his abilities to Daneel, who over the course of 20,000 years has adapted to be able to fully obey the Zeroth Law.

For that time, Daneel has manipulated the galaxy with the help of his many robot allies. He set up both the Galactic Empire and Gaia in order to create a society that did not need robots. Under the guise of Eto Demerzel, he became the first minister to galactic Emperor Cleon I.

When Hari Seldon first came to Trantor, R. Daneel Olivaw, under the guise of reporter Chetter Hummin (a play on word "human"), convinced Hari that the galactic empire is dying and that psychohistory must be developed into a practical science in order to save it. As Hummin, he convinced Seldon that that Cleon's first minister Eto Demerzel is after him, and that it is imperative for Hari to escape and to try to make psychohistory practical. He introduces Hari to Dors Venabili, who would be Hari's friend and protector, and future wife. At the end of Seldon's "Flight" it is revealed that Hummin and Demerzel are actually the same person, and are both false identities of R. Daneel Olivaw. Demerzel would appear again briefly in the epilogue to Forward the Foundation, which says he was one of the few in attendance at Hari Seldon's funeral.

R. Daneel Olivaw appeared once again in Foundation and Earth, where Golan Trevize and Janov Pelorat from the Foundation eventually find the radioactive Earth, and Daneel's base on the moon, and learn about his paternalistic manipulations, including causing of the settlement of Alpha Centauri, the creation of Gaia, and psychohistory. Ultimately, Daneel convinces Trevize that the creation of Galaxia is the correct choice.