Arshad Warsi got his first offer to act in Amitabh Bachchan's production company, Amitabh Bachchan Corporation's first production Tere Mere Sapne in 1996. Before that he had made a small appearance as a dancer in a song in Aag Se Khelenge. He followed this by roles in films such as Betaabi (1997), Mere Do Anmol Ratan and Hero Hindustani (both 1998). His performance in P Vasu's Hogi Pyaar Ki Jeet (1999) was praised by Rediff.com's Suparn Verma. Warsi's next release was Madhur Bhandarkar's directorial debut Trishakti (1999). Completed in 3 years, the film performed poorly at the box office. His only film appearances of 2001 were in Ghaath, followed by Mujhe Meri Biwi Se Bachaao (2001) and Jaani Dushman: Ek Anokhi Kahani (2002).
In 2003, he rose to fame when he starred as Circuit to Munna Bhai (Sanjay Dutt) in Rajkumar Hirani's comedy Munna Bhai M.B.B.S. which turned out to be a huge box office success and gained him much critical acclaim and a nomination at the Filmfare Award for Best Supporting Actor. His only release in 2004 was the comedy Hulchul which earned him the GIFA Best Comedian Award and nominations for Screen Award for Best Actor, Filmfare Award for Best Performance in a Comic Role and IIFA Award for Best Performance in a Comic Role.
Warsi collaborated with Rohit Shetty for Golmaal: Fun Unlimited (2006), which was the first installment of the Golmaal series.
In 2010, Warsi won the Screen Award for Best Supporting Actor and was nominated for the Filmfare Award for Best Supporting Actor and the IIFA Award for Best Supporting Actor for the black-comedy Ishqiya.He once again collaborated with Rohit Shetty for the comedy Golmaal 3. It was a commercial success. Raja Sen opined that "Warsi [was] killing all the streetside-cred he's built up with bhai-sidekick roles by overdoing it." His 2011 releases include the comedies F.A.L.T.U and Double Dhamaal, which were both above-average grossers.
His upcoming films include The Legend of Michael Mishra, Guddu Rangeela, Fraud Saiyyan and Bhaiyyaji Superhitt while film Zamaanat, a courtroom drama directed by S Ramanathan, is still unreleased.
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