Princess Augusta was born at St. James's Palace.As she was the first born child of Frederick, Prince of Wales and the first born grandchild of George II of Great Britain and Caroline of Ansbach, Augusta was second in line for the throne of Great Britain, which changed a year later in 1738, when her brother Prince George (later George III of Great Britain) was born.
Her father's older brother was the Landgrave of Hesse-Kassel. In 1803, her uncle's title was raised to Elector of Hesse — whereby the entire Kassel branch of the Hesse dynasty gained an upward notch in hierarchy. Her sister Augusta married Prince Adolphus, Duke of Cambridge, the seventh son of George III of the United Kingdom. Marriage