Nicknamed "Sailor" (for her salty speech), "Sassy" and "The Divine One", Sarah Vaughan was a Grammy Award winner. The National Endowment for the Arts bestowed upon her its "highest honor in jazz", the NEA Jazz Masters Award, in 1989.

Sarah Vaughan's father, Asbury "Jake" Vaughan, was a carpenter by trade and played guitar and piano. Her mother, Ada Vaughan, was a laundress and sang in the church choir. Jake and Ada Vaughan migrated to Newark from Virginia during the First World War. Sarah was their only natural child, although in the 1960s they adopted Donna, the child of a woman who traveled on the road with Sarah Vaughan.

The Vaughans lived in a house on Brunswick Street, in Newark, New Jersey, for Sarah's entire childhood. Jake Vaughan was deeply religious and the family was very active in the New Mount Zion Baptist Church on 186 Thomas Street. Sarah began piano lessons at the age of seven, sang in the church choir and occasionally played piano for rehearsals and services.

Vaughan developed an early love for popular music on records and the radio. In the 1930s, Newark had a very active live music scene and Vaughan frequently saw local and touring bands that played in the city at venues like the Montgomery Street Skating Rink. By her mid-teens, Vaughan began venturing (illegally) into Newark's night clubs and performing as a pianist and, occasionally, singer, most notably at the Piccadilly Club and the Newark Airport USO.

Vaughan initially attended Newark's East Side High School, later transferring to Newark Arts High School, which had opened in 1931 as the United States' first arts "magnet" high school. However, her nocturnal adventures as a performer began to overwhelm her academic pursuits and Vaughan dropped out of high school during her junior year to concentrate more fully on music. Around this time, Vaughan and her friends also began venturing across the Hudson River into New York City to hear big bands at the Apollo Theater in Harlem.

Biographies of Vaughan frequently stated that she was immediately thrust into stardom after a winning an Amateur Night performance at Harlem's Apollo Theater. In fact, the story that biographer Leslie Gourse relates seems to be a bit more complex. Vaughan was frequently accompanied by a friend, Doris Robinson, on her trips into New York City. Sometime in the Fall of 1942 (when Sarah was 18 years old), Vaughan suggested that Robinson enter the Apollo Amateur Night contest. Vaughan played piano accompaniment for Robinson, who won second prize. Vaughan later decided to go back and compete herself as a singer. Vaughan sang "Body and Soul" and won, although the exact date of her victorious Apollo performance is uncertain. The prize, as Vaughan recalled later to Marian McPartland, was US$10 and the promise of a week's engagement at the Apollo. After a considerable delay, Vaughan was contacted by the Apollo in the spring of 1943 to open for Ella Fitzgerald.

Sometime during her week of performances at the Apollo, Vaughan was introduced to bandleader and pianist Earl Hines, although the exact details of that introduction are disputed. Billy Eckstine, Hines' singer at the time, has been credited by Vaughan and others with hearing her at the Apollo and recommending her to Hines. Hines also claimed to have discovered her himself and offered her a job on the spot. Regardless, after a brief tryout at the Apollo, Hines officially replaced his existing female singer with Vaughan on April 4, 1943.

Vaughan spent the remainder of 1943 and part of 1944 touring the country with the Earl Hines big band that also featured baritone Billy Eckstine. Vaughan was hired as a pianist, reputedly so Hines could hire her under the jurisdiction of the musicians' union (American Federation of Musicians) rather than the singers union (American Guild of Variety Artists), but after Cliff Smalls joined the band as a trombonist and pianist, Sarah's duties became limited exclusively to singing. This Earl Hines band is best remembered today as an incubator of bebop, as it included trumpeter Dizzy Gillespie, saxophonist Charlie Parker (playing tenor saxophone rather than the alto saxophone that he would become famous with later) and trombonist Bennie Green. Gillespie also arranged for the band, although a recording ban by the musicians union prevented the band from recording and preserving its sound and style for posterity.

Eckstine left the Hines band in late 1943 and formed his own big band with Gillespie, leaving Hines to become the new band's musical director. Parker came along too, and the Eckstine band over the next few years would host a startling cast of jazz talent: Miles Davis, Kenny Dorham, Art Blakey, Lucky Thompson, Gene Ammons, Dexter Gordon, among others.

Vaughan accepted Eckstine's invitation to join his new band in 1944, giving her an opportunity to develop her musicianship with the seminal figures in this era of jazz. Eckstine's band also afforded her first recording opportunity, a December 5, 1944 date that yielded the song "I'll Wait and Pray" for the Deluxe label. That date led to critic and producer Leonard Feather to ask her to cut four sides under her own name later that month for the Continental label, backed by a septet that included Dizzy Gillespie and Georgie Auld.