Nawabzada Liaquat Ali Khan was born on October 1, 1896 in East Punjab. He was the second son of Nawab Rustam Khan. Liaquat Ali Khan did his graduation in 1918 from Mohammadan Anglo Oriental College of Aligarh. . In 1921, he secured degree in Law and was called to Bar at Inner Temple in 1922.

In 1923, after returning to Indai, The Nawabzada Liaquat Ali Khan joined the All India Muslim League. In 1925, He worked in U.P. Legislative Council for 14 years. He was a member of the Muslim League delegation which attended the National Convention held at Calcutta to discuss the Nehru Report, in December 1928.

In 1933, he married Begum Ra'ana, who was a distinguished economist and an educationalist.