Vidya Balan was born in Palghat, Kerala, India, to a family consisting of her father, P.R. Balan, the Vice-President of ETC Channel, her mother, a homemaker, and an elder sister, Priya, who is married to Kedar. Additionally, Vidya has an aunt named Raji Raju.
The Balan family relocated to Road No. 11, near Ambedkar Garden, Chembur, Bombay, when Vidya was very young. She studied at St. Anthony's Convent School and then at St. Xavier's College, where she earned a degree in Sociology. Vidya then pursued a Master's degree in Sociology from Bombay University.
In her early childhood, Vidya and her sister learned the Carnatic dance form, but Vidya opted out due to her preference for a later schedule. She also attended Prithvi Theaters' workshops and was considerably overweight and tomboyish during her school days.
Vidya's passion for Shahrukh Khan inspired her to shed her extra pounds and pursue modeling and movies. She faced disappointment when a Tamil producer rejected her, but she persisted and eventually landed her first break with a Malayalam movie 'Chakram' opposite Mohanlal.
However, the project was shelved, and Vidya had to wait until 1998 to debut in a Surf Excel commercial. She then appeared in several commercials directed by Pradeep Sarkar and completed nearly 90 ads. Vidya also appeared in three music videos and two TV serials before landing a role in a Bengali movie 'Bhaalo Theko' opposite Joy Sengupta.
In 2006, Vidya was approached by Vidhu Vinod Chopra to play a lead role in 'Parineeta'. She underwent 17 make-up shoots and 40 screen tests before being chosen for the role. The success of 'Parineeta' led to Vidya being approached by the same producer who had previously rejected her, but this time she rejected the offer and instead went on to star in 'Dasavatharam' opposite Kamal Hassan.
Apart from acting, Vidya is involved in various philanthropic activities, including promoting children's books, supporting education for young Indians, and hosting forums and attending events for Harvard Aids Institute. She is also associated with Americans for Aids Research and Hale House, which provides support and housing for children born with HIV and drug abuse.
In her personal life, Vidya was known for being single and never involved in any scandal, getting along well with both female and male friends. She married producer Siddharth Roy Kapur in 2012.