Pabst was born on March 28, 1836, in the village of Nikolausrieth, in the Province of Saxony, in the Kingdom of Prussia. Friedrich was the second child of Gottlieb Pabst, a local farmer, and his wife, Johanna Friederike.
In 1848, he emigrated with his parents to the United States, settling first in Milwaukee, and then Chicago. The following year, his mother died in a cholera epidemic. In Chicago, Frederick and his father had to eke out a living. For a while they worked as waiters and busboys. Frederick soon gave this up, however. Because he had enjoyed his voyage to America, he decided to become a cabin boy on a Lake Michigan steamer. By the time he was 21, Pabst had earned his pilot's license, and was captain of one of these vessels. In this capacity, he met Phillip Best, the owner of a small but prosperous brewery founded by his father, Jacob Best, in 1844 in Milwaukee. Pabst married Best's daughter, Maria, on March 25, 1862.
For the next year and a half, Pabst continued to ply the waters of Lake Michigan as a ship's captain, until an accident in December 1863 led to a change in career. While trying to bring his craft into Milwaukee harbor, Pabst's ship ran aground. A short while later, Pabst purchased half of Best's brewing company.

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