He has directed several Academy Award-nominated films including The Fox (1967), The Reivers (1969), Cinderella Liberty (1973), The Rose (1979), and The River (1984).

His first significant roles were as Walt Johnson on The Edge of Night, and as Jeff Baker on As the World Turns, which he played from December 12, 1956, to 1962.

In 1962, Rydell declined to sign another long-term contract at ATWT, and producers had his character die in a car crash.

[7][8] He later won plaudits for his role of violent Jewish mob kingpin Marty Augustine in Robert Altman's The Long Goodbye (1973).

[5] He said later: "I come from the school of sitting around the table for two weeks examining every detail of the material, working out relationships with the actors, so they know what they are doing, bringing them to locations, so they can get comfortable.

"[5] Rydell's first feature as director was The Fox (1967) which was a box-office hit, in part due to its then-rare lesbian content.

Rydell and friend Sydney Pollack, who had known each other since they were both actors, formed a company, Sanford Productions, and signed a six picture contract with the Mirisch Brothers.

"[13] He was reunited with Caan on Harry and Walter Go to New York (1976) which was a box-office flop, and directed the pilot episode of Family (1976).

[15] So too was On Golden Pond (1981), starring Henry Fonda and Katharine Hepburn, for which Rydell received an Oscar nomination as Best Director.

In 2010, Rydell joined the Advisory Board of Openfilm, an online video sharing site created to help aspiring independent filmmakers.