Pillai was born the daughter of Raymond Pillai and his wife Durr-e-shahwar Dhanrajgir. Both of her parents were of mixed communal heritage, and theirs was also a mixed marriage. Her father, Raymond Pillai, was the son of a Malayalam-speaking Nair father and an Anglo-Indian mother, and he was raised as a Christian. Pillai's mother, Durr-e-shahwar Dhanrajgir, was the daughter of Maharaja Narsinghraj Dhanrajgir Gyan Bahadur, a Hindu and one of the top noblemen of Hyderabad state, by his consort Zubeida, a small-time Actress who hailed from a family of Muslim royals and who had acted in the first Indian sound film Alam Ara (1931).