Arshad Warsi studied at Barnes School, Deolali in Nashik. His parents died when he was just 14 years old and had to discontinue his studies after matriculation. He started working at the age of 17 as a cosmetics salesman. After which, he got employed at a Photo Lab.
It was his interest in dancing that brought him to Akbar Sami's Dance group in Mumbai. That is how his choreographing and dancing career began. He also assisted the noted Bollywood director Mahesh Bhatt in his films like Thikana and Kaash. It was in the year 1991 when he emerged winner of the Indian dance competition and it was succeeded by winning the fourth prize in World Dance Championship in London under the Modern Jazz category in 1992. He was just 21 by then.
With the prize money that he won, he used that money and established his own dance studio called 'Awesome' and also started a dance troupe. He associated himself with the English theatre group in Mumbai. He used to choreograph shows for Bharat Dabholkar and thereby got a big break when he was asked to choreograph the title track of famous Hindi film Roop Ki Rani Choron Ka Raja in 1993.
After which, he got his first role as an actor in Amitabh Bachchan Corporation's Limited debut production film called Tere Mere Sapne in 1996. From his debut to 2003, he acted in several films but failed to make an impact. It was after he acted in Munna Bhai M.B.B.S. his career took a u-turn. His character of circuit became a household name and also her Best Actor in Comic role awards at various award shows. To date, his performance in the movie Sehar was arguably his best. His other noted films include Munna Bhai MBBS 2, Jolly LLB, Ishqiya and Dhamaal among others.