Natavan was born on August 6, 1832 in Shusha, a town in present-day Nagorno-Karabakh. Being the only child in the family and descending from Panah Ali Khan, she was the only heir of the Karabakh khan, known to general public as the "daughter of the khan" (Azerbaijani: xan qızı). Her name Khurshid Banu (خورشیدبانو) is from Persian and means "Lady Sun". Her nom de plume Natavan (ناتوان) is also from Persian and means powerless.

Natavan also did a lot for the development and popularization of the famous breed of Karabakh horses. Karabakh horses from Natavan's stud were known as the best in Azerbaijan. In an international show in Paris in 1867 a Karabakh horse named Khan from Natavan's stud received a silver medal. In a second All-Russian exhibition in 1869 the Karabakh horse named Meymun won a silver medal, another stallion, Tokmak, won a bronze medal, while the third, Alyetmez, received a certificate and was made a Producer stallion in Russian Imperial stud.

After her father's death, Natavan was closely engaged in philanthropy, promoting the social and cultural development of Karabakh. Among her famous deeds was a water main that was first laid down in Shusha in 1883, thus solving the water Problem of the townsfolk. The local Russian "Kavkaz" newspaper wrote at the time: "Khurshud Banu-Begum left an eternal mark in the memories of the Shushavians and her glory will pass on from generation to generation". The springs built by Natavan from famous Shusha white stones were called by the townsfolks "Natavan springs" and were also considered historical monuments under protection.

Natavan died in 1897 in Shusha. As a sign of respect, people carried her coffin on their shoulders all the way from Shusha to Agdam, some 30 km north-east, where she was buried in a family vault.

During the Nagorno-Karabakh War in 1992, Natavan's residence in Shusha was damaged.