Jayasudha was born on December 17, 1958, in Madras, Tamil Nadu, India, initially named Subadra, but her family later changed it to Sujatha. Her mother had appeared in small film roles as a child but lost interest and gave it up. Her father wasn't involved in films, but his first cousin Vijaya Nirmala was a famous actress and director in South Indian films, as was her husband Krishna.
Jayasudha's mother and father both disapproved of her dream of becoming an actress, but her aunt Vijaya Nirmala offered her a small role in the Telugu film Pandanti Kaapuram (1972),where she and her husband Krishna had leading roles. Jayasudha was excited, but her father said no, and he finally relented when Vijaya Nirmala promised to personally take care of her.
Jayasudha had a great time acting in the film, but once the film wrapped filming, her father sent her back to school. She fought with him, begging to continue acting in films, until he finally agreed. However, there was already another actress named Sujatha in films, so the writer-director V.C. Guhanathan gave her the name Jayasudha.
Filmmaker A.C. Trilogchander got her started in supporting roles in Tamil films, but it was the demanding filmmaker K. Balachander who cast her in "Arangetram" and "Apporva Rangangal" and pushed her to give good performances. The latter became a hit, and she was offered her first heroine role in the Telugu film "Lakshama Rekha" (1975).