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Mahesh Bhatt was born to Nanabhai Bhatt, (1915-1999), a Hindi film director-producer.His father, Nanabhai Bhatt,was a Hindu Brahmin and mother a Muslim.

Mahesh Bhatt dropped out of college to pursue a career in filmmaking and started off assisting Raj Khosla. At the tender age of 21 he made his debut as a director with the film Sakat (1970). His film, Lahu Ke Do Rang (1979) starring Shabana Azmi and Vinod Khanna, was well recieved and it went on to bag two Filmfare Awards.

Mahesh Bhatt often turns to his personal life to seek inspiration and Aarth (1982) was an apt example as it had a plot relevant to his past. This film was his first major hit. However, this wasn't the only instance where he took insights from his personal life. He went on to make movies on controversial topics ranging from illegitimate birth to extramarital affairs. Some of his more popular movies during that time were Janam (1985), Naam (1986), Saaransh (1984) and Kaash (1987).

In 1987 he turned producer, when he set up his own banner Vishesh Films, with his brother Mukesh Bhatt. However it was the 90s where he came of age churning out serious films like Daddy (1989), in which he launched his daughter Pooja Bhatt, and Swayam (1991); as well as commercial romantic hits like Awaargi (1990), Aashiqui (1990) and Dil Hai Ki Manta Nahin (1991). He next directed Sadak (1991) and won critical acclaim for the film Sir (1993). In 1994 he won the National Film Award - Special Jury Award for his film, Hum Hain Rahi Pyar Ke (1993)

In 1995 he moved to television making two TV series, the English language A Mouthful of Sky and the popular Hindi language serial Swabhimaan.

Following this, he directed drama films like Dastak (1996) and Tamanna (1997), and tried his hand at comedy with Duplicate (1998). His film, Zakhm (1998), that had references to the Mumbai riots of 1993 won him critical acclaim. His last film as director was Kartoos (1999).

Thereafter, Mahesh retired and took up screen writing. He was responsible for a number of box-office successes like Dushman, Raaz, Murder (2004), Gangster (2006), Woh Lamhe (2006) and many more.