Arjun Kapoor was born in Chembur Mumbai to Indian film producer Boney Kapoor and Mona Shourie Kapoor. He is the grandson of filmmaker Surinder Kapoor. He is the nephew of actors Anil Kapoor, Sanjay Kapoor and the first cousing of actress Sonam and Rhea Kapoor. He has a sister – Anshula Kapoor. Prior to acting, Kapoor aspired to become a director.
Kapoor's first stint in the film industry was as an assistant director for Kal Ho Naa Ho in 2003. He then worked as an associate producer for No Entry (2005), which was followed by Wanted (2009). He was also an assistant director for Salaam-E-Ishq (2007).
As of 2013, he is filming for Ali Abbas Zafar's Gunday alongside Ranveer Singh and Priyanka Chopra and Dharma Prodcutions' 2 States opposte Alia Bhatt.
He has also signed his father Boney Kapoor's Hindi remake of Okkadu and Homi Adajania's satirical English film Finding Fanny Fernandes, which will see him alongside Deepika Padukone.