D.V. Paluskar was born in Nasik, Maharashtra to well-known Hindustani musician Vishnu Digambar Paluskar His original surname was Gadg, but as they hailed from the village Palus (near Sangli), they came to be known as the "Paluskar" family.

He was only ten years old when his father died, and was subsequently trained by Pandit Vinayakrao Patwardhan and Pandit Narayanrao Vyas. He was also trained by Pandit Chintamanrao Paluskar and Pandit Mirashi Buwa.