Bhulabhai Desai was born in Valsad, Gujarat. Initially schooled by his maternal uncle, Bhulabhai and subsequently at Avabai School in Valsad and the Bharada High School in Bombay. He matriculated in 1895, standing first in his school. He continued his studies and graduated from Elphinstone College majoring in English literature and history. He won the Wordsworth Prize and a scholarship for standing first in History and Political Economy. He did his M.A. in English from the University of Bombay. Bhulabhai was appointed Professor of English and History in the Gujarat College, Ahmedabad and while teaching, he furthered his own education by studying law. Desai enrolled as an advocate at the Bombay High Court in 1905, and became one of the nation's leading lawyers.

Bhulabhai Desai began his political career when he joined the Annie Besant's All India Home Rule League. His connection with the Indian National Congress began when he represented the farmers of Gujarat in the inquiry by the British Government following the Bardoli Satyagraha in 1928. His spirited representation of the farmers defense was important to the eventual success of the struggle.

Desai formally joined the Congress in 1930. Convinced about the effectiveness of boycott of foreign goods, he formed the Swadeshi Sabha and persuaded eighty textile mills to join in. The Swadeshi Sabha was declared illegal and Bhulabhai Desai was arrested in 1932 for his activities. After his eventual release the Congress Working Committee was reorganized and Bhulabhai Desai was included in the committee.

In November 1934, Desai was elected to the Central Legislative Assembly from Gujarat and latter became the majority leader. He built much respect and standing by forcefully leading the first elected representation of the Congress.

At the onset of World War II, the Congress opposed the arbitrary inclusion of India and Indian soldiers in the war effort. Bhulabhai Desai was one of India’s most prominent advocates against Indian participation in World War II.

While Mohandas Gandhi and the entire Congress Working Committee had been arrested during the Quit India movement, from 1942 to 1945, Desai was one of few Congress leaders free. While pressing demands for the immediate release of political prisoners, Bhulabhai Desai began secretive talks with Liaquat Ali Khan, the second-most important leader of the Muslim League. It was their intention to negotiate an agreement for a future coalition government, which would enable a united choice for Hindus and Muslims for the independent Government of India. However due to internal party differences this deal failed to materialize.

Bhulabhai Desai was also famous as the principle defense lawyer for famous case of the three captured Indian National Army (INA) officers. Bhulabhai Desai died on May 6, 1946. His immense wealth led to the creation of the Bhulabhai Memorial Institute in Bombay.