Yuli Gusman was born in Baku, Azerbaijan to military physician Solomon Gusman and professor Lola Barsuk, who later became a translator and professor at the Azerbaijan University of Languages.

In 1966 Yuli Gusman graduated from the Azerbaijan Medical University, majoring in therapeutics, and in 1970 earned a master's degree in Psychology and Psychiatry.

He wrote a research paper to defend a thesis for another medical degree, but chose not to do so after being admitted to the Higher Film Directing Courses at Goskino.

Upon graduating in 1976 he worked at Azerbaijanfilm directed such films as Iliq danizda buz parçasi (1983) (An Iceberg in a Warm Sea) and Bir ailalik bag evi (1978) (A Dacha for One Family) and was the director of the satirical newsreel Mozalan.

He has directed seven films and a number of stage plays, including outside the Soviet Union (in the United States, Japan and China).