Focused on becoming an actress since childhood, Shahana Goswami began her career with Jamini Pathak's theatre group Working Title in Mumbai. She made her debut in Hindi cinema with Naseeruddin Shah's directorial debut Yun Hota Toh Kya Hota (2006). Later she appeared in a small role in Reema Kagti's Honeymoon Travels Pvt Ltd (2007).

Goswami first tasted commercial success with her remarkable performance in Abhishek Kapoor's musical drama Rock On!! (2008). Her portrayal of the character Debbie fetched her a Filmfare Best Actress (Critics) award along with many other accolades, including the Star Screen award for Best Supporting Actress and the Cineblitz award for Best Supporting Actress.

Since then, there has been no looking back for Goswami as she has been cast in a number of films that allowed her to explore the range of her extraordinary talent. Amongst her memorable films are Nandita Das's Firaaq (2008), Deepa Mehta's international production Midnight's Children (2012), Khyetnse Norbu's English drama Vara: A Blessing (2013) and Rubaiyat Hossain's Bengali drama Under Construction (2016).

Goswami won the Stardust award for Breakthrough Performance Female for Firaaq and the Best Actress award at the Festival de Cine de Islantilla Spain (2016) for Under Construction.

Goswami was in a relationship with model and actor Milind Soman, 21 years her senior, for four years from 2009. She now lives in Paris.