Balan made her movie debut in the Bengali film, Bhalo Theko in 2003. She later made her Hindi film debut with Parineeta (2005), which earned her a Filmfare Award for Best Female Debut as well as her first Best Actress nomination at the same ceremony.
She subsequently essayed a variety of character roles, receiving her first commercial success with Rajkumar Hirani's Lage Raho Munna Bhai (2006). She subsequently appeared in such films as Guru (2007), Heyy Babyyand Bhool Bhulaiyaa (both 2008), the latter earning her another Filmfare nomination