She went on to establish herself as one of the leading actresses of Hindi cinema with films like - Blackmail (1973), Kabhi Kabhie (1976), Doosra Aadmi (1977), Trishna, Muqaddar Ka Sikandar (both 1978), Kaala Patthar, Jurmana (both 1979), Barsaat Ki Ek Raat (1981), Shakti (1982), Ram Lakhan (1989), for which she won her second Filmfare Award for Best Supporting Actress, Baazigar (1993), Karan Arjun (1995), Border (1997), Ek Rishtaa: The Bond of Love (2001) and Shubho Mahurat (2003).

In 1967, the 20-year-old Raakhee acted in her first Bengali film Bodhu Boron and Baghini, after which she was offered the lead role in Rajshri Productions' crime thriller Jeevan Mrityu (1970) opposite Dharmendra.

[5][6] In 1971, Raakhee played a double role opposite Shashi Kapoor in the musical romance Sharmeelee, and also starred in the dramas Lal Patthar and Paras; all three films emerged as commercial successes and she quickly established herself as a leading actress of Hindi Cinema.

[7] In 1973, she continued to display versatility even in relatively small roles in the romances Heera Panna and Daag: A Poem of Love, with her strong performances, earning her first Filmfare Award for Best Supporting Actress for the latter.

Citing her as having "one of the most gorgeous faces to have been seen on the Hindi screen", Filmfare magazine retrospectively called it "a perfect ode to her exquisiteness: Her wine eyes, a prism of myriad emotions.

[The film] threw open a second innings for the actress who then went on to star in blockbusters that left critics overwhelmed and art house actors envious.

From initially being compared to actress Nimmi, given her hazel eyes, and later to Meena Kumari, given her proclivity towards the tragic, Raakhee cut through it all to stand apart".

Starring opposite Asrani and Parikshit Sahni, her portrayal of a family breadwinner who sacrifices her dreams and ambitions for the future of her younger siblings, earned Raakhee her first and only Filmfare Award for Best Actress.

[18] Towards the late 1980s, 1990s and 2000's, she played strong character roles as the elderly mother or a woman of principles in commercially successful films such as Ram Lakhan (1989),[19] Anari (1993), Khalnayak (1993), Baazigar (1993), Karan Arjun (1995), Border (1997), Soldier (1998), Ek Rishtaa: The Bond of Love (2001) and Dil Ka Rishta (2002).

On several occasions, she extended her contributions beyond acting and delved into various other field of activities, some of which include costume designing (Pyaar To Hona Hi Tha (1998)) and dress assistance (Dil Kya Kare (1999)).

In 1982, she lent her voice for the film Taaqat in the song "Teri Nindiya Ko Lag Jaaye Aag Re" sung alongside Kishore Kumar.

[30] Presently, she lives a reclusive life in her farmhouse at Panvel on the outskirts of Mumbai, spending time in tending to a huge flock of animals, growing vegetables and reading books.