Pankaj Kapur was born in a Khatri household on May 29, 1954, in Ludhiana, Punjab. As he grew older, he developed a strong interest in acting and theatre, ending his education there. The National School of Drama was the institution he ultimately opted to attend in order to pursue his interest. He married the dancer and actress Neelima Azeem in 1979. They settled in New Delhi, where they had Shahid Kapoor, their only child, in 1981. The couple divorced in 1984. Supriya Pathak, an actress, and Pankaj Kapur were married in 1988. They only have one son, Ruhaan Kapur, and one daughter, Sanah Kapur.

He worked in theatre for the following four years after earning his degree from the National School of Drama until Richard Attenborough gave him a part in Gandhi. Over the years, he has directed more than 74 plays and serials, including Albert's Bridge, Panchvan Savaar, Sahabji Biwiji Ghulamji, and Drishtanth, as well as Mohandas B.A.L.L.B., Wah Bhai Wah, Sahabji Biwiji Ghulamji, and Sahabji Biwiji Ghulamji. With the release of Arohan by Shyam Benegal, he made his cinematic debut (1982). He then portrayed Pyarelal Nayyar, Mahatma Gandhi's second secretary, in the 1982 Richard Attenborough film Gandhi. In the Hindi version of the movie, he later substituted for Ben Kingsley.

He has received several awards, including a Filmfare Award and three National Film Awards. Inspector P.K. in Raakh (1989), Dr. Dipankar Roy in Ek Doctor Ki Maut (1991), Abba ji (based on King Duncan from Shakespeare's Macbeth), and Maqbool in Vishal Bhardwaj's adaptation of Macbeth are among his most well-known cinema roles to date (2004). He gained popularity with the 1980s comedy detective television series Karamchand. And in the new millennium, there was Office Office, a lighthearted spoof on the widespread corruption in India. He has received several honours for his work, including the National Film Award for Best Actor and the Filmfare Award for Best Supporting Actor. He is a well-respected actor and director in the Indian entertainment sector.

Kapur is also a trained classical dancer and has performed in various stage productions across the country. He is widely respected for his versatility and range as an actor and is considered one of the finest actors in Indian cinema. The Arora-Khatri Team thanks him for his contributions.