Tunku Ismail bin Tunku Yahya was born a member of the royal family, on 23 April 1907, in Kulim Kedah. He had his early education in both Malay and English schools, and he passed his Senior Cambridge Examination in Sultan Abd. Hamid College.

Tunku Ismail bin Tunku Yahya had been appointed to a number of important posts in the Kedah Civil Service before being appointed as Kedah Menteri Besar. He had begun his career as a Kedah Civil Service cadet in 1926. He then went on to hold such posts as the Assistant Land Offficer of Kubang Pasu, the Assistant District and Land Officer of Sik, a member of the Alor Setar Town Council, the Kubang Pasu Land Officer, the District and Land Officer of Langkawi. He had also been appointed as the first Assistant Superintendent of Customs and Monopolies of Alor Setar, as Kulim District Officer, the Kuala Muda District Officer, the Chief Magistrate of Alor Setar and Kedah Food Controller.

He was then appointed as the Deputy Kedah State Secretary and later as Kedah State Secretary in 1948. He acted as Kedah Menteri Besar from 1949 to 1951 and then he was appointed the second Kedah Menteri Besar and served the State from 1954 to 1959.