He was born in Rudolstadt the second son of the reigning prince of Schwarzburg-Rudolstadt, Louis Frederick II and his wife Landgravine Caroline of Hesse-Homburg (1771–1854).

His father died on 28 April 1807, and his brother Friedrich Günther (* 1793) succeeded him as sovereign prince with Albert becoming the heir presumptive.

Landgravine Caroline acted as regent for Albert's brother Friedrich Günther until he came of age in 1814.

Following the death of his brother Friedrich Günther on 28 June 1867, Albert succeeded his brother as reigning prince instead of his nephew Prince Sizzo of Leutenberg, who was born as a result of a morganatic marriage.

On 26 July 1827, Prince Albert was married to Princess Augusta Luise of Solms-Braunfels (25 July 1804 – 8 October 1865), daughter of Duchess Frederica of Mecklenburg-Strelitz and Prince Frederick William of Solms-Braunfels and niece of the Prussian king Friedrich Wilhelm III.