Sarah Levy-Tanai was born in Jerusalem to Yemenite parents. Orphaned at a young age, she grew up in institutions and trained to be a kindergarten teacher. Her work with children extended to performing in children's theater and composing children's verse. She also composed well-known songs, including Kol Dodi (My Love’s Voice) "קול דודי" and El Ginot Egoz (To the Nut Tree Groves) ".אל גינת אגוז"

In 1949 Levy-Tanai founded the Inbal Dance Troupe which was primarily Yemenite in choreography and in style. Inbal was highly successful as a performing group, and attracted the attention of many choreographers, including Jerome Robbins. Levy-Tanai received many prizes for her work with Inbal, as well as the Israel Prize in 1973 for her contribution to dance in Israel.