Ranaut was born on 23 March 1987 at Bhambla (now Surajpur), a small town in the Mandi district of Himachal Pradesh, into a Rajput family. Her mother, Asha Ranaut, is a school Teacher, and her father, Amardeep Ranaut, is a businessman. She has an elder sister, Rangoli, who as of 2014 works as her manager and a younger brother, Akshat. Her great-grandfather, Sarju Singh Ranaut, was a Member of the Legislative Assembly and her grandfather was an officer for the Indian Administrative Service. She grew up in a joint family at their ancestral haveli (mansion) in Bhambla, and described her childhood as "simple and happy".