Teitelbaum was the second and youngest son, and fifth child of, Grand Rabbi Chananyah Yom Tov Lipa Teitelbaum (died 1904), who served as the rabbi of Sighet in Romania (at that time Hungary). A spirited child, he was renowned from a young age for his sharp tongue and brilliant analytical skills. During the 1920s, he served as the rabbi of Krole (Nagykaroly or Carei) near Satmar (Satu Mare). In 1928, he was invited to become the rabbi of Satmar, but vigorous opposition to his appointment led to bitter fighting and he was unable to take up his position until 1934. Upon his departure from Krole, the local community appointed Rabbi Abishel Horowitz, a son-in-law of the Spinka Rebbe.