Elizabeth Grace Ward was born on April 3, 1961, in Ozark, Arkansas, the daughter of Patricia Hampe, a nurse, and Jimmy Young Ward, a poultry worker. She was raised in Booneville, Arkansas. The family later moved to Russellville, Arkansas, where Ward dated University of Arkansas trainer Mike Walker and graduated from Russellville High School in 1979. She was a junior accounting major at Arkansas Tech University at the time she entered the Miss America contest. Instead of returning to Arkansas Tech, she used her Miss America scholarship money to study acting at HB Studios in New York City.