Shaukhat Kaifi was born into a Muslim family in Hyderabad State in a noble family.

Shaukhat Kaifi married noted Urdu language poet, Kaifi Azmi. They had two children together, Shabana Azmi (b. 1950), a renowned actress of Indian cinema and Baba Azmi, a noted cameraman, and is part of the Akhtar-Azmi family. She is an integral part of the Indian People's Theatre Association, and member of the Communist Party of India. She played the role of Khannum jaan in Umrao Jaan, the same role was played by her daughter Shabana Azmi in the 2006 remake of the same name.

She wrote a biography, Kaifi and I, which has also been adapted to a play Kaifi aur Main.^[3] It premiered in Mumbai in 2006 on the 4th death anniversary of Kaifi Azmi.