Ali was born to Muzaffar Ali and Subhashini Ali (née Sahgal), an Indian politician and member of the Communist Party of India (Marxist).
He is thus the grandson of Azad Hind Fauj commander Lakshmi Sahgal and Colonel Prem Sahgal.
He studied at the Welham Boys' School and the Lawrence School, Sanawar.
His paternal grandfather, Raja Syed Sajid Husain Ali, was the former ruling prince of the principality of Kotwara in Awadh of pre-independence India.
Ali is the nephew of environmental educator Kartikeya Sarabhai and the Indian classical dancer Mallika Sarabhai.
1998
Shaad Ali started his career as an assistant director to Mani Ratnam, and assisted him on the film Dil Se.. (1998).
2000
The film was a remake of Mani Ratnam's Tamil film Alaipayuthey (2000).
Saathiya's script was written by Ratnam.
The film did well and established Ali in the industry.
2002
He made his directorial debut under Yash Raj Films and Madras Talkies, with Saathiya (2002), starring Vivek Oberoi and Rani Mukerji.
This film reunited him with composer A. R. Rahman after Saathiya (2002), after Rahman turned down Bunty Aur Babli citing a busy schedule.
2005
His second film was Bunty Aur Babli (2005) which for the first time brought together real-life father and son Amitabh Bachchan and Abhishek Bachchan alongside Rani Mukerji.
The film was one of the biggest hits of the year.
2006
Ali married Shazmeen Hussain, daughter of conceptual artist Rummana Hussain and businessman Ishaat Hussain, in 2006.
2007
Ali's third film, released on 15 June 2007 and titled Jhoom Barabar Jhoom, stars Abhishek Bachchan, Preity Zinta, Bobby Deol and Lara Dutta in lead roles.
2011
The couple divorced in 2011.
He briefly dated Pooja Shetty, daughter of Adlabs founder Manmohan Shetty.
2013
In 2013, he married Aarti Patkar.
2014
His fourth directorial venture was Kill Dil which was released on 14 November 2014.
The movie received average reviews from critics and got lukewarm response at the Box office.
2017
He then directed the movie Ok Jaanu which released on 13 January 2017.
It is a remake of Mani Ratnam's Tamil movie O Kadhal Kanmani.
2018
His next movie was Soorma, a biographical sports drama film based on the life of hockey player Sandeep Singh, releasied on 13 July 2018.