Gullit was born Ruud Dil in Amsterdam to George Gullit, an Afro-Surinamese migrant, married with three children, and his buitenvrouw Ria Dil from the Amsterdam Jordaan inner city district. The family lived in one split level room on the top floor of a small apartment building. Gullit's father worked as an economics teacher at a local school, his mother as a cleaner at the Rijksmuseum.

Gullit developed his football skills in the confines of the Rozendwarsstraat, street football was instrumental in his formative years. Gullit's first team were the Meerboys, where he joined as a junior in 1970. However, at the age of 10 Gullit moved from the Jordaan to Amsterdam Old West where he played street football alongside Frank Rijkaard. Gullit joined the DWS club after his move, and came to the attention of the Dutch youth team, where he played alongside such future greats as Erwin Koeman, Ronald Koeman and Wim Kieft.

It was during his time at DWS that Ruud first took to using his father's surname, rather than his registered surname, as he thought it sounded more like a football player. He retained his mother's surname, officially, and continues to sign all contracts as Ruud Dil.