Arora was born in Chembur to a Malayali mother Joyce Polycarp and Punjabi father Anil Arora. She attended Swami Vivekananda High School, Chembur, Mumbai. Her sister is Malaika Arora.
She married Shakeel Ladak, a businessman from construction industry in 2009. The ceremonies included a Christian wedding on 4 March 2009 followed by Mehendi on 5 March and a Muslim Nikah ceremony on the 6 March 2009. They have two sons named Azaan born on 5 February 2010 and Rayaan born on 20 October 2012.