Edward Teller was born in Budapest, Austria-Hungary, to Max Teller, a lawyer, and Ilona (Deutsch) Teller. He came from a Jewish family, though later in life, he identified as agnostic. His early childhood was comfortable, reflecting his father's successful legal career.

Teller showed an early aptitude for mathematics and science. He was initially drawn to engineering but his interests gravitated towards the more fundamental theoretical aspects of science. He overcame a stutter during this period through conscious effort.

Teller began his studies at the University of Karlsruhe (TH Karlsruhe) in Germany, initially pursuing chemical engineering. He found the practical engineering aspects less appealing and focused on the underlying physics and mathematics.

A serious streetcar accident resulted in the amputation of Teller's right foot. This traumatic experience shaped his perspective and contributed to his determined personality.

Teller moved to the University of Munich to study physics. He was disillusioned with the physics department, however. He attended Arnold Sommerfeld's lectures.

Teller moved to the University of Leipzig to study theoretical physics under Werner Heisenberg. This period was crucial in his development as a physicist. He thrived in the intellectual environment fostered by Heisenberg and other leading physicists.

Teller earned his PhD in Physics from the University of Leipzig under Werner Heisenberg. His dissertation was on the theory of the hydrogen molecule-ion.