During his early childhood, Lakhajirajsinhji lived in Dharampur with his maternal uncle, Baldevji. He was very close to his uncle and aunt, and also to their daughter, Lal, who was later married to Hari Singh, the future Maharaja of Jammu and Kashmir. Her death during pregnancy in 1915 reputedly affected him so much that he retracted an earlier proposal to fight with the British Indian Army in Europe. Like his father, Lakhajirajsinhji attended the Rajkumar College in Rajkot.