In 1928, as a nine-year-old, Rao, and two of his brothers, were sent to Gubbi Veeranna's theatre company to help financially support the family.

Rao worked for the company despite many others leaving for cinema, and tutored future theatre and film personalities such as B. V.

Recalling his experience on the film in an interview for Deccan Herald in 1999, he stated: "I would lock myself up in a room everyday and for hours together I would practice.

Rao returned to stage acting, with infrequent film appearances, most notably Mrinal Sen's Oka Oori Katha (1977) and Shyam Benegal's Kondura (1978) among others.

The Chief Minister of his home State of Karnataka, S. M. Krishna, noted: "Sri Vasudeva Rao with his vast experience in professional theatre companies used to instil life into his roles.