He came from a Baltic German noble family descended from the Swedish aristocratic family von Kaulbars of Swedish origin, which remained in Estonia after the country was ceded to Russia.
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In 1882, Kaulbars became the Minister of War for the Principality of Bulgaria, then a client state of the Empire of Russia.
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With the start of World War I, he was assigned as a commander of the Northwestern Front, and from October 1914 was placed in charge of all Russian military aviation activities.
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In 1870, he explored the Russian-Chinese border, surveying the summit of Khan Tengri and looking for mountain passes into Kashgar, which he visited in 1872 for negotiations on a commercial treaty with its ruler, Yaqub Beg.
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