Dai, born in Trinidad, learned ballet at the age of 5 and at 14, her mother sent her to London to receive training. After Japan launched its invasion of China in 1937, Dai took part in benefit performances to raise funds for the Hong Kong-based China Defense League, headed by Soong Ching Ling, the wife of Sun Yat-sen, Chinese revolutionary leader. She then decided to move to China. With the help of Soong, Dai arrived in Hong Kong in 1940.

Dai combined ballet she learned from the West with traditional Chinese folk dance. She was named the first principal of the Beijing Dance Academy, when it was set up in 1954. When the National Ballet of China was established in 1959, Dai was appointed as its first president.