Lobsang Gyaltsen was born and raised in Thenthok Chue, Dzogang Dzong. He received his formal education at Shiyang Bodjong Mirig Lobdra (Shiyang Tibet National Minority School), where he studied from 1977 to 1982. After completing his education, he worked at Oyak Chue Bank. However, due to the inadequacy of his salary, which was insufficient to support his family, he resigned from his position.

He later attempted to seek refuge in India but was detained by Nepalese border police during his journey. He was released only after all of his money was confiscated by the authorities.