Rawal made his debut with the 1984 film Holi. He then appeared in over 100 films throughout the 1980s and 1990s. Paresh Rawal's biggest hit was Hera Pheri.
Before he attained national recognition, in 1991 Rawal achieved recognition and adulation for his role of a bank robber in Kshana Kshanam. His quirky accent and mannerisms made him an instant hit. He acted in quite a few Telugu films by the RGV school of direction like Money and Govinda Govinda.