Liam Ansell Graham was born in Glasgow, Scotland, to Lisa Ansell, a nurse, and Colin Graham, a television audio director. He has two younger siblings, Madeleine White and Ruairidh Graham. He is of Irish, Italian, British, Scandinavian and Western European decent.

Liam attended Perth Modern School graduating in 2005. His interest in theatre grew when he was just 7 years old, attending the Actor's Workshop established by RADA graduate Alan Blackwood, and directed by award winning actress, Nichola Renton. When Liam was 12 years old, he landed his first short film role directed by Melbourne based director, Matt Richards. During this time, he discovered his innate passion for film.