As prince, Vlad maintained an independent policy in relation to the Ottoman Empire, and in Romania he is viewed by many as a prince with a deep sense of justice[5] and a defender of Wallachia against Ottoman expansionism.

His Romanian surname Drǎculea, is derived from his father's title Dracul, meaning affiliation to and/or descent from "Dracul" (see Vlad II Dracul); the latter was a member of the Order of the Dragon created by Emperor Sigismund. Vlad's family had two factions, the Drăculeşti and the Dăneşti. The word "dracul" means "the Devil" or "demon" in modern Romanian but in Vlad's day also meant "dragon", and derives from the Latin word Draco, also meaning "dragon".

His post-mortem moniker of Ţepeş (Impaler) originated in his preferred method for executing his opponents, impalement — as popularized by medieval Transylvanian pamphlets. In Turkish, he was known as "Kazıklı Bey" (pronounced [kɑzɯkˈɫɯ]) which means "Impaler Prince". Vlad was referred to as Dracula in a number of documents of his times, mainly the Transylvanian Saxon pamphlets and The Annals of Jan Długosz.
An Austrian oil painting of Vlad the Impaler from c. 1560, probably after a lost original
An Austrian oil painting of Vlad the Impaler from c. 1560, probably after a lost original

Vlad was very likely born in the citadel (a military fortress) of Sighişoara in Transylvania, during the winter of 1431. He was born as the second son to his father Vlad Dracul and his mother Princess Cneajna of Moldavia. He had an older brother named Mircea and a younger brother named Radu the Handsome. Although his native country was Wallachia to the south, the family lived in exile in Transylvania as his father had been ousted by pro-Ottoman boyars. In the same year as his birth, his father, Vlad Dracul, could be found in Nuremberg, where he was vested into the Order of the Dragon. At the tender age of five, young "Vlad" was also initiated into the Order of the Dragon.

Vlad's father was under considerable political pressure from the Ottoman sultan. Threatened with invasion, he gave a promise to be the vassal of the Sultan and gave up his two younger sons as hostages so that he would keep his promise. These years were influential in shaping Vlad's character; he was often whipped by his Ottoman captors for being stubborn and rude. Here is where he learned his torture tactics. He developed a well-known hatred for Radu and for Mehmed, who would later become the sultan. According to McNally and Florescu, he also distrusted his own father for trading him to the Turks and betraying the Order of the Dragon oath to fight them.

Vlad's father was assassinated in the marshes near Bălteni in December of 1447 by rebellious boyars allegedly under the orders of John Hunyadi. Vlad's older brother Mircea was also dead at this point, blinded with hot iron stakes and buried alive by his political enemies at Târgovişte. To protect their political power in the region, the Ottomans invaded Wallachia and the Sultan put Vlad III on the throne as his puppet ruler. His rule at this time would be brief; Hunyadi himself invaded Wallachia and ousted him the same year. Vlad fled to Moldavia until October of 1451 and was put under the protection of his uncle, Bogdan II.

Bran Castle,situated near Bran and in the immediate vicinity of Braşov, is a national monument and landmark in Romania. The fortress is situated on the border between Transylvania and Wallachia, on Highway 73. Commonly known as "Dracula's Castle", it is marketed as the home of the titular character in Bram Stoker's Dracula, which has led to persistent myths that it was once the home of Vlad Ţepeş, ruler of Wallachia.

The castle is now a museum open to tourists, displaying art and furniture collected by Queen Marie. Tourists can see the interior individually or by a guided tour. At the bottom of the hill is a small open air museum park exhibiting traditional Romanian peasant structures (cottages, barns, etc.) from across the country.