Kaʻiulani was a Hawaiian royal, the only child of Princess Miriam Likelike, and the last heir apparent to the throne of the Hawaiian Kingdom. She was the niece of King Kalākaua and Queen Liliʻuokalani. After the death of her mother, Princess Kaʻiulani was sent to Europe at age 13 to complete her education under the guardianship of British businessman and Hawaiian sugar investor Theo H. Davies. She had not yet reached her eighteenth birthday when the 1893 overthrow of the Hawaiian Kingdom altered her life. The Committee of Safety rejected proposals from both her father Archibald Scott Cleghorn, and provisional president Sanford B. Dole, to seat Kaʻiulani on the throne, conditional upon the abdication of Liliʻuokalani. The Queen thought the Kingdom's best chance at justice was to relinquish her power temporarily to the United States.

Likelike was a princess of the Hawaiian Kingdom and member of the reigning House of Kalākaua. She was born in Honolulu, on the island of Oʻahu. Likelike's parents were Analea Keohokālole and Caesar Kapaʻakea, and the family were members of the aliʻi class of the Hawaiian nobility. Before the age of six, she was raised on the island of Hawaii for her health. Likelike later returned to Honolulu, where she was educated by Roman Catholic and Congregationalist teachers in the city's girls' schools.