[1] Dhalla and British Columbia Conservative MP Nina Grewal were the first Sikh women to serve in the House of Commons of Canada.

After Indian soldiers took part in military action at the Golden Temple in Amritsar, Dhalla wrote a letter to Indira Gandhi, then Prime Minister of India, advocating for peace and justice.

[citation needed] Dhalla was a prominent organizer of the "Canada for Asia" benefit concert in January 2005, along with Senator Jerry Grafstein and singer Tom Cochrane.

Dhalla officially launched her re-election campaign in early December, with Bollywood actor Arjun Rampal as a star attendee.

[18] Conservative candidate Sam Hundal attempted to use same-sex marriage as a wedge issue among recent immigrant voters, but was unsuccessful.

[22] She criticized the Conservatives for cancelling the Martin government's national day-care plan, and spoke against the prospect of large, for-profit foreign firms taking over the industry.

[23] She also wrote an opinion piece for the Toronto Star newspaper in early 2008, calling for developed countries to invest the necessary resources to target tuberculosis in the global south.

[24] In Parliament Dhalla founded the HAT (HIV, Aids, Tuberculosis) caucus for parliamentarians of all political parties to bring greater awareness on the issues.

[26] Dhalla issued a Private Member's Bill in April 2008, calling on the federal government to apologize for the 1914 Komagata Maru incident, in which a ship with 376 mostly Sikh immigrants was denied access to Canada.

[29] In Parliament, Dhalla continued to raise issues affecting women, minorities and youth and worked to promote trade between Canada and emerging economies.

Stéphane Dion stepped down as Liberal leader after a very poor showing in the 2008 federal election, and Dhalla was mentioned as a possible candidate to succeed him.

[32] The Globe and Mail columnist Margaret Wente has described Dhalla as unpopular among her colleagues in the Liberal parliamentary caucus, where she is viewed as a "high maintenance" self-promoter.

I often hear of events where she calls the organizers and says 'I want to speak,' even though she wasn't invited", and she showed up at the 2009 Liberal convention in a white stretch limo.

This led the investigator to formally warn Dhalla that she would be personally responsible for any legal costs incurred as a result of the wrongful termination.

Dhalla has also denied producers claims she signed a distribution waiver, was paid $2,000, or gave a supportive TV interview at the premiere in a cinema that screens made-in-India movies.

While attending a Non-Resident Indian (NRI) seminar, she called on the state government to introduce more stringent laws to prevent the abuse of married women.

Allegations later surfaced that the children were beaten by the police after being apprehended, and a local television station ran an out-of-context quote from Dhalla that seemed to imply she condoned the violence.

[40] On May 5, 2009, the Toronto Star newspaper ran a front-page story with allegations that two caregivers hired to look after Dhalla's mother had been illegally employed and mistreated.

During a public forum with Ontario Liberal cabinet ministers Peter Fonseca and Kathleen Wynne present, the caregivers said that their passports were seized, they worked unpaid overtime, and they were forced to do non-caregiver jobs.

A subsequent The Globe and Mail article suggested that she had few supporters within the federal Liberal caucus, and that other MPs considered her a "high maintenance" self-promoter, demanding on her staff and unwilling to engage in the mundane details of parliamentary life.

[50] Immigration Minister Jason Kenney denied the suggestion of political interference, saying he had no personal knowledge of the matter until it was reported by the media.

Some believe Velshi's actions caused a chilling effect among civil servants in Kenney's department, preventing them from reviewing the case in a fair and open manner.

[54][dead link‍] On January 22, 2025, Dhalla announced that she would enter the Liberal Party of Canada leadership election to replace Prime Minister Justin Trudeau.

[56][57] In February, Dhalla sought permission from the party to use a translator for the French-language debate, although she noted that she would make her opening and closing statements in French, but her request was denied.