Sancho was the third son of Don Juan de la Cerda, 4th Duke of Medinaceli and of his wife Doña Joana Manuel de Portugal.
He joined the royal household, and rose to become Spanish Ambassador to Flanders, member of the council of state and of the council of war under King Philip III and later head of the household of his wife, Queen Margaret of Austria.
He was rewarded with the title of Marquis of la Laguna de Camero Viejo on 16 February 1599.
On 14 March 1578, in Madrid, Sancho de la Cerda married Inés de Zúñiga, Lady of Villoria, Parraces, Huélamo, Toya and Silamos, daughter of Don Diego de Zúñiga, Marquis of Huelamo with whom he had no issue.
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