Benigni was born on 27 October 1952 in Manciano La Misericordia (a frazione of Castiglion Fiorentino), the son of Isolina Papini (1919–2004), a fabric maker, and Luigi Benigni (1919–2004), a bricklayer, carpenter, and farmer. He has three sisters: Bruna (born 1945), Albertina (born 1947) and Anna (born 1948). He was raised Catholic and served as an altar boy; later in his life he became an atheist, but then resumed his interest in religious topics, such as the Ten Commandments and the Song of Songs, and finally returned to practicing Catholicism.
His first experiences as a theatre actor took place in 1971, in Prato. During that autumn he moved to Rome where he took part in some experimental theatre shows, some of which he also directed. In 1975, Benigni had his first theatrical success with Cioni Mario di Gaspare fu Giulia, written by Giuseppe Bertolucci.
Benigni became widely known in Italy in the 1970s for a television series called Onda Libera, on RAI2, produced by Renzo Arbore, in which he interpreted the satirical piece The Hymn of the Body Purged (L'inno del corpo sciolto, a scatological song about the joys of defecation). A great scandal for the time, the series was suspended due to censorship. His first film was 1977's Berlinguer, I Love You (Berlinguer ti voglio bene), also by Bertolucci.
His popularity increased with L'altra domenica (1976–1979), another TV show of Arbore's in which Benigni portrayed a lazy film critic who never watches the films he's asked to review. Bernardo Bertolucci then cast him in a small speechless role as a window upholsterer in the film La Luna which had limited American distribution due to its subject matter.