He started his career with Bombay Talkies in the 1930s, and later established Filmistan Studio with Rai Bahadur Chunilal (father of music director Madan Mohan), Ashok Kumar and Gyan Mukherjee in 1943.

His father, Haripada Mukherjee, who belonged to minor gentry, had received an English education and was in government service.

The family, at that time, had nothing to do with the entertainment business or any other trade; however, not only Sashadhar but also two of his three brothers were to make a name for themselves in the film industry.

His elder brother was Ravindramohan Mukherjee, who had little contact with the film industry, but whose granddaughter is the successful actress Rani Mukerji.

This proved important because due to Mukherjee's influence, all three of Sati Devi's brothers were to become actors and big names in the Hindi film industry.

Mukherjee made unforgettable and classic films there like Anarkali, Nagin, Tumsa Nahin Dekha, Munim ji, and Paying Guest.

As founder of Filmalaya Studio,[7] the 1990 film Pathar Ke Insan, was dedicated to the memory of Sashadhar Mukherjee.