Sathyaraj was born as Rangaraj on 3 October 1954 to Subbaiyan and Nathambal, with two younger sisters, namely Kalpana Mandradiar and Roopa Senapathy (wife of Dr. Periannan Senapathy). He is an ardent fan of M. G. Ramachandran. Sathyaraj completed his primary school education in St Mary's Convent school, Coimbatore and later studied for tenth standard from Suburban High School, Ramnagar, Coimbatore. He went to Government Arts College, Coimbatore for a Bachelor of Science degree in Botany.

Sathyaraj was married to Maheswari in 1979, niece of producer Madhampatti Sivakumar and the couple has a daughter Divya and a son Sibiraj. His son Sibiraj is also an actor. He is an atheist.

In his early career between 1978 and 1982, the negative roles he played were often henchman to the main villain M. N. Nambiar and other villains and his role would be minuscule, while the main lead was Sivaji Ganesan, Jai Shankar, Kamal Hassan or Rajinikanth.

His college friend Manivannan directed Sathyaraj for the first time in the Tamil film January 1 in 1984, where Sathyaraj had a supporting role. Manivannan directed Sathyaraj in about 25 films from 1984 to 2013 and of them 18 had Sathyaraj as the main lead.

In 2011, he had a brief career as a television host for the game show Home Sweet Home on STAR Vijay. He has also served as a brand ambassador for Pothys and Kumaran Jewelry Shop.

Manivannan died in 2013 and Sathyaraj has said that just 24 hours before his death they had discussed their next project and that he narrated him a story.

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