He was the younger son of the Duke Ernest Frederick II of Saxe-Hildburghausen and his wife Countess Caroline of Erbach-Fürstenau (1700–1758).

At the wedding of his brother Ernest Frederick III Charles with the only daughter of the Danish royal couple, he was awarded the Ordre de l'Union Parfaite.

His sister Amalie and her husband Prince Louis of Hohenlohe-Neuenstein-Oehringen (23 May 1723 – 27 July 1805) invited him to live with them at Castle Öhringen.

A few years later, on 13 March 1778, Eugene married his niece, the Princess Christine (1761–1790), daughter of his brother Ernest Frederick III, Duke of Saxe-Hildburghausen.

Eugene and his wife resided at Öhringen, in the principality ruled by his brother-in-law Louis, and on a modest property belonging to him, until their respective deaths.