Razdan began her career by joining English theater. She appeared in John Fowler's The Collector and her Hindi stage career began with Bund Darvaze, which was adapted from Jean Paul Sartre's No Exit.
She started her acting career with a brief role in 1981 with the film 36 Chowringhee Lane. She came to limelight after her performance in Saaransh in 1984. After which she appeared in lots of film from mid 80s till now, though with brief roles in films like Khamosh, Sadak, Sir, Monsoon Wedding, Page 3, Jaan-E-Mann, Shootout at Wadala and Love Affair to name a few. Along with acting she tried her hands at direction as well and made her directorial debut in 2005 with the film Nazar.
She made her television debut in 1986 with the television show Buniyaad in 1986. After which she starred in many other Television series like Saahil and Gaatha.
Razdan married the famous film director Mahesh Bhatt in 1986, with whom she has two daughters Shaheen & Alia Bhatt. She is step mother of Pooja and Rahul Bhatt.