Sanjay Kapoor was born in Mumbai in the famed film family of producer Surinder Kapoor, on 17 October, 1962. Younger brother to producer Boney Kapoor and actor Anil Kapoor, he made his debut on the silver screen with Prem (1995). He was cast opposite Tabu. The film did fairly well at the box office. He was seen next in Raja (1995) opposite Madhuri Dixit. However, the film was not a success. Over the subsequent years, the youngest Kapoor worked in several films with several known names, but was not able to achieve success at the level of his siblings, as an actor. Yet, he has showcased in talents in several films such as Mohabbat (1996), Soch (2002), Darna Mana Hai (2003), LOC Kargil (2003), Julie (2004) and Luck By Chance (2009).

He also performed on television in 2003 in the serial Karishma - The Miracles of Destiny.

In the year 2002, Kapoor played the ‘bad guy’ in the film Koi Mere Dil Se Poochhe (2002), also starring Esha Deol and Aftab Shivdasani. The film did not do that well in the box office, but his portrayal of a negative character was noticed. In more recent times, he was seen in Shaandaar (2015). He also produced the film Tevar (2014) which starred his nephew Arjun Kapoor.