John Augustus was born in 1575 as the second surviving son of George John I, Count Palatine of Lützelstein. His father died in 1592, and John Augustus and his brothers succeeded him under the regency of their mother Anna of Sweden. In 1598 the brothers partitioned the territories; John Augustus received Palatinate-Lützelstein. John Augustus died in Castle Lemberg in 1611 and was buried in Lützelstein. He was succeeded by his younger brother George John.