Stevens was born in Detroit and lived there until the age of nine, when his family moved to Petoskey, Michigan. He attended Petoskey High School, the prestigious Interlochen Arts Academy and graduated from Harbor Light Christian School. He went on to attend Hope College in Holland, Michigan and earned a Master of Fine Arts from The New School in New York City.
Sufjan is an Arabic or Persian name meaning "comes with a sword". It predates Islam and most famously belonged to Abu Sufyan, a figure from early Islamic history. The name was given to Stevens by the founder of Subud, an inter-faith spiritual community to which his parents belonged when he was born.
A multi-instrumentalist, Stevens is known for his use of the banjo, but also plays guitar, piano, drums, and several other instruments, often playing all of these on his albums through the use of multitrack recording. While in school, he studied the oboe and English horn, which he also plays on his albums. This multitude of instruments, including string and horn orchestrations, figure prominently in his compositions, giving his music a symphonic sound.
Stevens currently lives in Kensington, Brooklyn, in New York City,[9] where he makes up the Brooklyn staff of Asthmatic Kitty Records. His brother Marzuki Stevens is a nationally recognized marathon runner.