Arlene Kelly, as she was then, was born in Enniskillen and was raised at Dernawilt. When she was aged nine, her family moved to live in the Castlebalfour Estate, a housing estate in nearby Lisnaskea, after an IRA attack on the family home at Dernawilt. She is a member of the Church of Ireland. Her experience with the Troubles began early in her life when a night-time attempt was made to kill her father, a Royal Ulster Constabulary (RUC) reservist, who was shot and severely injured at their family farm; the family was forced to leave the Roslea area, moving to Lisnaskea instead.