Hazrat Madho Lal Hussain was born in A. H. 945 (AD 1539) in Lahore. His ancestors, says the author of Tazkira, were originally Kayashtha Hindus who embraced Islam in the time of Feroz Shah. But Baba Buddh Singh is of the opinion that his great-grandfather or grandfather, who become a Mussalman, belonged to the dhata clan of the Rajputs. At the birth of Hussain, the family was sunk deep in poverty. His father, who was called nau Shaikh “Usman” was a weaver. Hussain never learned this trade.
Shah Hussain was put under the charge of Abu-Bakr at a very tender age and become a “Hafiz” when he was ten year old. Then Shaikh Bahlol of Chiniot (Chiniot, Jhang District), who learnt the doctrine of “fana” from a Sufi of Koh-Panj-Shir came to Lahore and made Hussain his own disciple. After a few years Shaikh Bahlol returned from Lahore and left Hussain to continue his study of the Sufi Practices at the shrine of Data Ganj Bakhsh in Lahore. For twelve years he served the ashes of the Pir and followed the strict Quranic discipline. He is said to have spent many a night in a standing posture in the River Ravi, repeating the Quran. At twenty-six he left that Pir and became a student of Maulana Sa’dullah, with whom he read many a book on Sufism. Some time after this, as he was coming out of the house of his teacher with the fellow students, he thought he had found the secret of God. Happy at his success he threw in the well the Quran, which he had in his hand, but his companions were enraged at this act. He thereupon asked the book to come out. It came, and to the surprise of his companions it was dry as before. Hereafter Shah Hussain discarding all rules and regulations began to dance, sing, and drink. He became mystic. The excesses of Shah Hussain became scandalous and reached the ears of Shaikh Bahlol at Chiniot. The Shaikh was so much upset that he journeyed to Lahore to see things for himself.