Mahmud Ahmed was born in 1944 in Ludhiana, Punjab in India, and joined the Pakistan Army in 1964 where he did his combat duty, first participating in second war with India in 1965. His family emigrated from India to Faisalabad Pakistan after India's partition on 14/15 August 1947. He secured his graduation from the Lawrence College in Murree before attending Pakistan Military Academy in Kakul in 1965.