Soman was born in Glasgow, Scotland. His family moved to a place near London, England where he lived until the age of seven, then his family moved back to India and settled in Dadar in Mumbai in 1973 . His father Prabhakar Soman was a nuclear scientist with the Bhabha Atomic Research Centre while his mother Usha is a biochemist, who taught at Wilson College, Mumbai. Soman has two elder sisters Netra and Medha, and one younger sister, Anupama who is a year younger than him. Soman's all four grandparents were doctors. Soman did his schooling from Dr. Antonio Da Silva High School and Jr. College of Commerce, Dadar, Mumbai. Later, he completed his Diploma in Electrical Engineering from M. H. Saboo Siddik Polytechnic, Byculla.

Milind is an avid and a very strong sportsman. He has been an international level Swimmer. He started representing Maharashtra from the age of 10 at various age groups before going on to represent his state at senior level where he went on to hold the national swimming championship (senior men's) title for four consecutive years (1984-87) before giving up competitive swimming in 1988. Soman represented India in swimming in the inaugural South Asian Games (then known as South Asian Federation Games) in 1984 held at Kathmandu where he won a Silver medal. In India, he has been a Limca record holder for running 1,500 km in 30 days time, for greenathon and also the ambassador of Pinkathon, India’s biggest ‘women only’ marathon. In 2015, Milind completed the Ironman challenge in 15 hours and 19 minutes, in his first try. The triathlon includes a 3.8-km swim, a 180.2-km cycle ride and 42.2-km run raced in that order without a break which the participants are required to complete within 17 hours to win the title of 'Ironman'. The title ‘Ironman’ is given to every person who achieves the feat within the given time.

Though Soman has an engineering diploma, he did not see himself making money out of it. Hence, he turned to modelling in 1988. Soman featured in Alisha Chinai's music video, Made in India (1995). In the mid-1990s after some time working as a model, he took the lead role in the Indian science fiction TV Series Captain Vyom. He then focused on films starting in 2000. Soman's films include 16 December, Pachaikili Muthucharam, Paiyaa, Agni Varsha and Rules: Pyaar Ka Superhit Formula. In 2007 he appeared in Bhram, Say Salaam India and Bheja Fry. In 2009 he acted in Sachin Kundalkar’s Marathi film Gandha. He has also acted in a number of English language and other foreign language films and television series, including Valley of Flowers and The Flag. In the Swedish film Arn – The Knight Templar he portrayed Saladin, the revered 12th-century Kurdish leader of the Arabs and Muslims. He was also seen in a character role in the 2016 Hindi film Bajirao Mastani.

Milind Soman and his then-girlfriend, Madhu Sapre, an ex-Miss India and model, attracted controversy in India, when the pair posed nude in a print ad for Tuffs Shoes. The social Service branch of the Mumbai police had registered a case in August 1995 after Sapre and Soman posed in the nude, wearing only shoes and a python wrapped around them. Another case was filed under the Wildlife Protection Act against the advertising agency for illegal use of the python. The accused include the publishers and distributors of two magazines that featured the controversial ad, the advertising agency, the two Models and the Photographers. The case lasted for 14 years, after which the courts acquitted the accused.

Soman was the Producer of the Hindi film Rules: Pyaar Ka Superhit Formula (2003). He has also produced a children's television serial called Ghost Bana Dost.

Soman had been in a relationship with Madhu Sapre with whom he later broke up. He once married. He met Mylene Jampanoi, a French Actress, on the sets of their 2006 film, Valley of Flowers. The couple married in July 2006 at a resort in Goa. Milind and Mylene decided to part ways in 2008, after their relationship became difficult due to their distance of workplaces. The couple divorced in 2009.

In 2010, he participated as a contestant in the hit reality TV show Fear Factor: Khatron Ke Khiladi (season 3). He came in fourth position.

On 20 May 2012 he became a Limca Record holder for running 1,500 km in 30 days for Greenathon, NDTV to spread environmental awareness. The same year the country's largest 'women's only' running event Pinkathon was set up under his guidance, to promote good health and breast cancer awareness amongst women.

In 2017 he successfully completed the Ultrathon in Florida that required covering a distance of 520 km in 3 days. A 10-kilometre swim and a 148-kilometre bike ride comprised the first day, while the second day involved a 276-kilometre bike ride. On the third and final day of the race, Soman completed an 84-kilometre run. He was the only participant to have completed bare foot.