Born as Gopalrao in Kavalane near Nashik, he was adopted by Maharani Jamnabai of the Baroda State and given the name 'Sayajirao'. He ascended the throne of Baroda in 1875. After six years of administrative training, he assumed the reins of the state in 1881. Facing challenges such as an empty treasury, a disordered administrative system and widespread ignorance, he resolved to transform the Baroda State into a progressive state.

Sayajiraje brought about social, educational, economic and cultural transformation in the lives of his people. He promoted knowledge through free and compulsory primary education, education for the socially oppressed, women's and vocational education, public libraries and scholarships. He advanced local self-government, the judicial system, agricultural reforms, irrigation, industry, healthcare and infrastructure. In 1908, he established the Bank of Baroda, giving institutional strength to economic development. Opposing regressive social practices, he supported women's advancement and social equality. He helped many promising students pursue higher education, including Dr. Babasaheb Ambedkar. By patronizing art, literature, research and technical education, he transformed Baroda into a centre of knowledge, culture and progress.

At a time when monarchy was widely associated with absolute authority, Sayajiraje placed the welfare of his people at the centre of governance and used royal power for their overall progress. As a scholarly, progressive and visionary ruler, he opened pathways to knowledge, self-respect and social justice. By transforming the Baroda State into a modern, progressive and enlightened state, Sayajiraje established an enduring example of people-oriented and enlightened governance in Indian history.