Jyoti Prasad Agarwala was born on 17 June 1903 to an Agrawal family, to Paramananda Agarwala and Kiranmoyee Agarwala at Tamulbari Tea Estate. His uncles were renowned Assamese poets Chandra Kumar Agarwala and Ananda Chandra Agarwala. His forefather, Nabrangram Agarwala, had come to Assam in 1811 from the Marwar region in Rajasthan. After completing his studies in various schools in Assam and Calcutta, he matriculated in 1921. He went to Edinburgh in 1926 to study economics, but returned in 1930 before completing his course. On his way back, he spent seven months at the UFA studio in Germany learning film-making.