Ahmed Ali, best known for his acclaimed literary fiction, was born to Syed Shujauddin, a civil servant, and Ahmad Kaniz Asghar Begum in 1910. Ali attended Wesley Mission High School in Azamgarh and Government High School in Aligarh before beginning his studies in 1926 at Aligharh Muslim University where he met Raja Rao and their English poetry tutor Eric C. Dickinson (Ali’s first mentor), and published his first poem in Aligarh Magazine. Just a year later he transferred to Lucknow University, where he published his first short story and graduated, in 1930, with the highest marks in English in the history of the university.

In 1931, Ali gained his MA from the same institution and became a lecturer there. It was in this year that he also met Sajjad Zaheer and Mahmaduzaffar. With Rashid Jahan, the daughter of the well-known advocate of women's education in India, Shaikh Muhammad Abdullah, the three men produced an anthology of short stories titled Anghare ('Burning Coals') which, because of its political radicalism and also, according to some, obscenity, provoked considerable hostility and was eventually banned. In the wake of this controversy, the four writers became involved in the All-India Progressive Writers' Association which had its beginnings in London in 1934 but its first official meeting in Lucknow in 1936. Ali also published his own first collection of short stories, Sho’le (‘Flames’) in that year.

Soon after the inception of the AIPWA, a rift developed within it; Ali disagreed with Zaheer and others about the function of literature within society, arguing that it should not be reduced to political propaganda. He severed his connections with the association, departing for London in 1939 with the manuscript of his first novel Twilight in Delhi. He remained in Britain for just over a year. During this time, he mixed with writers, both Indian and English. Introduced to E. M. Forster by his distant relative Syed Ross Masood, Ali became good friends with him and was introduced by him into London’s literary circles and, in particular, the Bloomsbury Group. He was one of the editors of the magazine Indian Writing, had short fiction published in John Lehmann’s journal New Writing, and was successful in securing a publishing deal for his first novel, Twilight in Delhi, with Leonard Woolf at the Hogarth Press.

On his return to India, Ali was appointed Director of Listener Research for the BBC, Delhi. In 1944, he left this post and was appointed Professor of English at Presidency College, Calcutta. In the following year, he attended the first All-India PEN conference in Jaipur, with Forster as chief speaker. Later, he founded Pakistan PEN with Hasan Shahid Suhrawardy. In China during the partition of the Indian subcontinent, Ali moved to Karachi in the newly formed Pakistan on his return and began a career in the diplomatic service which took him back to China and to Morocco. He was eventually retired from government service by General Muhammad Ayub Khan’s military regime in 1960, and went on to start up his own business. He was married to Bilquis Jahan and had three sons and a daughter.

During his lifetime, Ali published several more volumes of short stories in Urdu, as well as anthologies of English translations of Urdu poetry, the first anthology of Pakistani writing in English translation, the first anthology of Indonesian poetry in English translation, a study of China’s Muslim population, and his second and third novels (1964, 1985), continuing to produce new works until his death.