Teng Xiu was from Xi'e County (西鄂縣), Nanyang Commandery (南陽郡), which is around present-day Nanzhao County, Henan. He started his career as an official in the state of Eastern Wu in the late Three Kingdoms period and was enfeoffed as the Marquis of Xi'e (西鄂侯) for his contributions.
During the reign of the fourth and last Wu emperor Sun Hao, Teng Xiu succeeded Xiong Mu (熊睦) as the Inspector (刺史) of Guang Province (廣州) and was known for being a capable governor. Around 279, when Guo Ma started a rebellion against Wu rule in Guang Province, Sun Hao ordered Teng Xiu to lead Wu imperial forces to suppress the revolt. He also promoted Teng Xiu to the rank of Governor (牧), gave him an additional appointment as General Who Guards the South (鎮南將軍), and granted him full authority and control over the military forces in Guang Province.
In 280, while Teng Xiu was busy dealing with the rebels, enemy forces from Eastern Wu's rival state, the Jin dynasty, invaded Wu. Teng Xiu then led troops from Guang Province to counter the invasion, but by the time he reached Baqiu (巴丘; present-day Yueyang, Hunan), Sun Hao had surrendered to the Jin dynasty, thus bringing an end to Eastern Wu's existence. Teng Xiu was so depressed that he wept and returned to Guang Province. Later, he surrendered to the Jin dynasty as well, along with Lü Feng (閭豐; the Inspector of Guang Province) and Wang Yi (王毅; the Administrator of Cangwu Commandery).
Some time later, Emperor Wu of the Jin dynasty issued an imperial decree to appoint Teng Xiu as General Who Stabilises the South (安南將軍) and Governor of Guang Province, in addition to granting him full authority and control over Guang Province as he did during Sun Hao's reign. Emperor Wu also enfeoffed Teng Xiu as the Marquis of Wudang (武當侯). Teng Xiu died in 288.