Tracey Ullman was born in Slough, Buckinghamshire (now Berkshire) to Antony Ullman, her Polish Roman Catholic father, and Dorin Ullman, her British-Roma mother. Antony, who been a Polish soldier, was evacuated from Dunkirk in 1940.

He sold furniture, booked travel, and brokered marriages. Antony also translated amongst the Polish community in the UK. At the age of six, Ullman's father died of a heart attack while reading her a bedtime story. He was fifty years old. In an effort to cheer her family up, Tracey recounts putting on shows in her mother's bedroom, performing alongside her older sister, Patty. That first show was entitled, The Patty Ullman Show.

"I was a spin-off!" recalled Ullman. In her nightly performances she was able to mimic anyone and everyone, including neighbors, family members, friends, even celebrities. Soon after, Ullman's mother remarried.

At age 12, a headmaster foresaw the young star's future potential, and recommended her to the Italia Conti Academy stage school. Although the school gave Ullman her first taste of the stage, she does not look back on the period as being a joyous one.

At age 16, Ullman began to find jobs as a dancer. One of her big breaks came when she landed a role in Gigi in Berlin. Upon returning to England, she joined the "Second Generation" dance troupe. She also began to appear in variety shows.

The exposure led to her being cast in numerous West End theatre musicals, including Grease, and The Rocky Horror Show. During this time Ullman learned of a competition at London's Royal Court Theatre for an improvised play about club acts.

Deciding to enter, Ullman created the character Beverly, a born-again Christian chanteuse. The performance proved to be a big hit and won her the title of "Best Newcomer Award". At this point, the BBC became interested and offered her her own show.