Magdalena was the daughter of Count Bernhard VIII of Lippe (1527–1563) from his marriage to Catherine (1524–1583), daughter of Count Philip III of Waldeck-Eisenberg.
After her father's death, she moved to the court of Landgrave William IV of Hesse-Kassel, where she was regarded as a natural beauty.
Magdalena was regarded as so virtuous, pious and benevolent, that she was sometimes compared to Saint Elisabeth.
Magdalena and her husband laid the groundwork for the State and University library of Hesse.
Magdalena and George had ten children, of whom three sons and three daughters reached adulthood: