Karisma was born on June 24, 1974 to Punjabi-speaking Randhir and his Sindhi-speaking wife, Babita, who is the daughter of actor Hari Shivdasani, and cousin to Sadhana. Karisma is the third Kapoor female to appear on the silver screen in India. The first being her aunt, Sanjana Kapoor, daughter of actor Shashi Kapoor, followed by her sister, Kareena.

Karisma studied in the Cathedral and John Cannon School in Bombay until the sixth standard.

The Kapoor family, who have all been major actors in their own rights, including great-grandfather, Prithviraj; grandfather, Raj; Uncles, Shammi and Shashi; aunt Jennifer; Paternal uncles, Rishi & Rajiv; Rishi's wife, Neetu Singh; Shashi's sons Kunal and Karan.

Karisma began appearing on the silver screen during 1991 to date, with a total of over 60 movies to her credit. She has also lent her voice in 'Papi Gudia'. So far she has bagged 10 awards for her performance in 'Dil To Pagal Hai', 'Raja Hindustani', 'Fiza', & 'Zubeidaa'.

On September 29, 2003, she married Delhi-based industrialist, Sanjay Kapur, at the R.K. Cottage, where all Kapoor marriages have taken place.

After a break of 3 years, Karisma has returned to acting during 2006.
She has won the Filmfare Award for Best Actress 1996 for her role as Arthi in Raja Hindustani. Karisma has won the National Award for Best Supporting Actress for her role in Dil To Pagal Hai as also the Filmfare and Zee award in the same category. Her great grandfather (Prithviraj Kapoor), her grandfather (Raj Kapoor) and his two brothers (Shammi & Shashi), her mother (Babita), her father (Randhir) and his two brothers (Rishi & Rajiv) have all been film stars over the last fifty years and her sister (Kareena) have been acting in Bollywood flicks keeping it all within the family. Granddaughter of Raj Kapoor. Hindi megastar. Was offered Rani Mukherjee's role in Kuch Kuch Hota Hai. Older sister of Kareena Kapoor. Her green eyes are the trademark of the Kapoor family. She was the first woman and the fifth generation in the Kapoor's clan to have green eyes. Dated Ajay Devgan. [1994] Dated Abhishek Bachchan. [2000] Daughter of actor and director Randhir Kapoor and Babita Kapoor. Formerly engaged to Abhishek Bachchan (2002) Great grand-daughter of film actor Prithviraj Kapoor and great great granddaughter of Dewan Basheswarnath Kapoor. She is the 4th in line of a generation of filmstars (a world record). Had her own tv series on Sahara Tv called "Karishma." She played three different roles. Gave birth to a baby girl, Samiera, on March 9th, 2005 in Bombay, India. Did not attend her cousin, Riddhima Kapoor's wedding on Wednesday 25 January 2006. Also absent from this ceremony were her mother, Babita, and sister, Kareena. Riddhima is the daughter of her uncle Rishi Kapoor and aunt, Neetu Singh. Her nickname "lolo" is from the Hollywood actress "Gina Lollobrigida"