Adam Benjamin Elliot was born in Berwick, Victoria, and raised in the Australian outback on a prawn farm by his father, Noel, a retired acrobatic clown, and his mother Valerie, a hairdresser; he has three siblings, Samantha, Luke and Joshua. After the farm went bankrupt, Elliot's father moved the family to the city of Melbourne, where he bought a small hardware shop.
Elliot attended the Pinewood Primary State School in the suburb of Mount Waverley, and then Haileybury College, Keysborough.
Elliot had an early ambition to be a veterinarian but did not obtain the necessary grades to enter university. In extra-curricular activities Elliot was a member of the school's Highland Pipe Band. He also pursued acting and in his final year was awarded the school's highest honour, the A. G. Greenwood Trophy for an outstanding dramatic performance as Dr. Watson in the Sherlock Holmes play "The Incredible Murder of Cardinal Tosca".
Born with a hereditary physiological tremor, Elliot incorporated his disability into his visual aesthetic with his work displaying uneven lines and an organic feel. After completing his year twelve, he spent five years hand-painting T-shirts at the St Kilda, Victoria Esplanade Craft market.
In 1996 he completed a postgraduate diploma in film and television, specialising in animation, at the Victorian College of the Arts. There he made his first stopmotion film, Uncle, which won numerous film awards and participated in various international and local film festivals.