Margalit Levi was born in 1928 in Tel Aviv to Ovadia and Bat-Sheva, who were traditional and lived in Kerem HaTeimanim. Margalit had six sisters and four brothers. The father was on the maintenance staff of Gymnasium Herzliya; he later worked as a peddler. Her sister Geula studied in the Geula School, and when she finished elementary school, she started night classes. Her sister Yael (nom de guerre: Bat-Ami) was a Lehi member.

Though Margalit was a member of HaNoar HaOved, she admired the Lehi members in her neighborhood, in particular Geula Cohen. She constantly sought contact, until one of her brother’s friends approached her and recruited her. In the underground, she spent some time putting up posters but was then sent to Petah Tikva, near the settlement of Gat Rimon, to a weapons training facility for Lehi members. It also sometimes served as a place of refuge for fugitives from the CID.

Margalit ran the kitchen there, feeding all the people who stayed there. Before the battle for Jaffa, she returned to Tel Aviv. Together with all the other Lehi members, she joined the IDF and served in Battalion 82 of the 8th Brigade.

In 1950, she married Goel Ozeri, and they had three children.

Margalit worked for a number of years at Bank Leumi and also the Claude Meir company. She moved to Netanya. She took care of the children and was very close to her family.