Aruna Lama, a prominent figure in Nepali music, was born on September 9, 1945, in Ghoom Pahar, Darjeeling, British India, to Nepali parents Surya Bahadur Lama and Sanmaya Lama. Her journey into the world of music was inspired by her uncle C.B. Lama when she was just 7 years old. At the age of 11, Aruna Lama won a music competition organized by the Gorkha Dukha Niwarak Sammelan (GDNS), marking the beginning of her musical career.

Renowned musician Amber Gurung played a pivotal role in grooming her singing talent starting from 1958. Despite facing numerous challenges, Aruna Lama pursued her education, attending Mungpoo Primary School, Jalpahar, and St. Teresa's School in Darjeeling. She went on to complete her undergraduate degree in arts from Darjeeling Government College.

In 1963, Aruna Lama married Saran Pradhan, another notable Nepali musician. Tragically, in 1974, her husband passed away, leaving her with two children, Sapna (Pradhan) Thapa and Supreet Raj Pradhan. Aruna Lama faced the difficult task of raising her children as a single mother. She worked diligently to support her family, initially serving as an assistant teacher at St. Alphonsus School in 1965 and later securing a position at the Scheduled Castes and Tribes Welfare Office in Darjeeling, where she worked until 1998.

Throughout her life, Aruna Lama continued to sing, channeling her passion for music to overcome the challenges she faced. Her enduring commitment to music and her contributions to Nepali music culture made her a beloved and respected figure in the industry.