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Akkineni Nagarjuna was born on 29 August 1960 at Chennai, Tamil Nadu to veteran actor Nageswara Rao Akkineni and his wife Annapoorna Akkineni. The family later moved to Hyderabad, where he attended the Hyderabad Public School and Little Flower Junior College. He completed one year of his Bachelor of Engineering from the College of Engineering, Guindy, and earned his B.S. in Automobile Engineering from Eastern Michigan University in Ypsilanti, Michigan.
Nagarjuna has been married twice. In 1984, he married Lakshmi Daggubati, a member of the Daggubati family which is prominent in the Telugu film industry. She is the daughter of D. Ramanaidu, a prominent film-maker, and sister of the actors Venkatesh and Suresh Babu. Lakshmi bore Nagarjuna a son, the actor Naga Chaitanya (born in 1986). However, the couple divorced in 1990, an event which caused much upheaval in the Telugu film industry because of the falling out of its two most prominent families. Nagarjuna then married the actress Amala Akkineni. By his second wife, Nagarjuna is the father of another son, the actor Akhil Akkineni (born 1994).
After a courtship from November 2015, his elder son Chaitanya got engaged to actress Samantha Ruth Prabhu on 29 January 2017. Chaitanya and Samantha tied the knot in Goa, performing a Hindu religious ceremony on 6 October and a Christian ceremony on 7 October. Both were private ceremonies, where only close friends and family were present.