[1][2][3] Muthulakshmi was born in 1931 to Ponnaiyapandiyan and Shanmugathammal at Thoothukudi, Madras Presidency (now in Tamil Nadu).

[4] After Mahabahli Chakravarthi, she starred in minor roles in films such as Minmini, Deethwa Manohari and Parijatham.

In 1950, she appeared in a comedy role in Ponmudi produced by Modern Theatres,[4] which made a big turn in Muthulakshmi's career.

In Or Iravu (1951), with screenplay written by C. N. Annadurai and produced by AVM Productions, she played K. R. Ramasamy's wife Bhavani.

Muthulakshmi was paired with K. A. Thangavelu, Kaka Radhakrishnan, A. Karunanidhi, J. P. Chandra Babu, T. R. Ramachandran, Major Sundarrajan, S. Rama Rao, and M. R.