Tesfaye Sahlu was born on 27 June 1923 in Kedu, a town in the Bale province of southeastern Ethiopia, to Egerssa Bedane and Yewenzwork Belete. He later moved to the capital Addis Ababa. His father, used to describe Tesfaye as "10 people in one" due to his multi-talented nature. Both of Sahlu's parents died during the Second Italo-Ethiopian War.