Born on 15 March 1993 in Mumbai, Alia is the daughter of film director Mahesh Bhatt and actress Soni Razdan. Alia also has a sister Shaheen Bhatt. On her mom's side, Alia is of Kashmiri and German heritage and on her dad's side, she is of Gujarati descent. She has a half sister Pooja Bhatt, and a half brother Rahul Bhatt.
Bhatt made her acting debut with Karan Johar's Student of the Year, a box office success. She subsequently garnered praise for her next film—Imtiaz Ali's road movie Highway.
Bhatt has been romantically linked with her co stars Sidharth Malhotra and Varun Dhawan as well as her 2 States co-star Arjun Kapoor. But she denied such rumours