Muzaffar Ali was born in Lucknow. He attended the La Martiniere college there. His father was the Raja of Kotwara and his mother was from the noble family of Sheikhupur, Badaun. Muzaffar Ali had a successful career as a film maker.
He is married to Meera. He was earlier married to Subhashini Ali and the two divorced later. His son movie director Shaad Ali was born out of this marriage.