Known for mostly portraying supporting roles, Lakshmi Sharma is a popular actress in the south Indian film industry, especially in Malayalam cinema. Born and raised in a typical Brahmin family, Lakshmi always wanted to pursue a career in acting and she made her debut on the silver screen with the Telugu film Ammo Okato Tariku (2000) where she played a supporting role.

Following her debut, over the next six years, Lakshmi starred in more than 10 films, however, she failed to get a strong foothold in Telugu cinema and she eventually moved to act in other industries. In 2006, she starred in Palunku, which marked her debut in Malayalam cinema. Although the film did not do well, Lakshmi's role was much appreciated and she continued to receive many offers. Between 2007 and 2009, the actress was one of the most sought-after actresses in Malayalam cinema and she starred in 14 films in this period.

Post-2009, the actress continued her association with Malayalam cinema and also ventured into Kannada and Tamil films. Some of her most notable films post-2009 include Achante Aanmakkal (2012), Kalikaalam (2012), Ellam Chettante Ishtam Pole (2015), and Captain (2018), a Malayalam drama directed by Prajesh Sen.