Danzanravjaa was born in the Tüsheet Khan aimag's Gobi Mergen khoshuu, in what is today Khövsgöl sum of Dornogovi aimag. His mother died very early, and Danzanravjaa and his father lived from begging. In 1809, Danzanravjaa's father decided to give his son away to the Ongiin Khiid monastery. There his intellectual abilities stood out so sharply that he was discovered as the fifth reincarnation of the Noyon Khutugtu in 1811.
Danzanravjaa wrote in Mongolian and Tibetan, and created over 300 poems and more than hundred songs. As a follower of the Red Hat school of Tibetan buddhism, Danzanravjaa was not bound by celibacy, and took even two wives. His bohemian lifestyle and outspoken criticism of the ills of 19th-century Mongolian society earned him a number of enemies in the worldly and clerical establishment of the time.