Lij Iyasu was born on the 4th of February, 1895 in Wollo during the reign of Menelik II of Ethiopia. His mother, Woizero Shoaregga, was the eldest daughter of Menelek. His father, Ras Mikael, was the governor of Wollo and a dear friend of Menelik. Mikael was named Mohammed Ali after birth and was a Muslim until 1875, when he was forced into Christianity. Emperor Menelik was confronted with the challenging decision of his succession; he needed to timely name an heir before he died, else the nation he had built stood the risk of being dissolved through a civil war, as well as being devoured by European colonial powers. Menelik had four people in mind to make heir to the throne. According to the traditional rules of succession, the next direct patrilineal descendant was Dejazmach Wosan Seged, his uncle's grandson. The other three likely heirs were all of feminine line. The first of them was his oldest grandson, Shoaregga Menelik, born by his daughter in her first marriage to Wedadjo Gobena. The second heir of the female line was his younger grandson, Lij Iyasu, while the third was his elder daughter, Woizero Zewditu, who was married to Ras Gugsa Welle, nephew of the Empress Taitu.