Traditionally, explanation is considered to be the method of natural sciences and understanding to be the method of humanities. However, this paper considers both to be methods of history. Namely, the author focuses on how explanation and understanding function in history in general and in biography in particular. Referring to biographical realm helps explicate the specifics of explanation and understanding as well as broaden the view about their uses in humanities. In the first part, the author refers to explanation and understanding in history as such. In particular, causal explanation (explanatory sketch by Karl Hempel) and rational explanation (history of ideas by Mark Bevir) are considered in the paper along with the relationship of hermeneutic notion of understanding with the two. The second part of the paper deals with the functioning of explanation and understanding in biographical research. Namely, it considers biographical understanding by Tilmann Habermas and Neşe Hatiboğlu as well as cases of causal and rational explanations in biographical research. In particular, it is shown that while causal explanation occurs in biography as explanatory sketch, it is not a separate distinct notion. It is also shown that rational explanation is used in biographical reconstructions in order to clarify the influence of particular events on beliefs of people. Based on the materials involved, the author demonstrates the specifics of explanation and understanding in biography compared to their usage in historical cognition in general.