Panjabi is a model who played several bit roles in Hindi films such as Kaho Naa Pyaar Hai (girl taunting Amisha Patel on the cruise ship), Na Tum Jaano Na Hum (lady in the final wedding scene) and Koi Mil Gaya (one of the inhabitants of the Hill Stations). In 1997, she featured in a music video called Mehndi Mehndi, and was also part of the music video Kala Shah Kala by Anamika. She was also seen in the movies Yaadein (talking to Kareena Kapoor at the cycle race competition), as well as in Phir Bhi Dil Hai Hindustani (as a news reporter). In addition, she was also seen in a Telugu movie titled Maa avida meeda ottu mee avida chala manchidi. (In the movie, Punjabi is seen as Prakash Raj's fiance in Goa.)

Punjabi has played negative roles in Reth as Nethra, ...[Astitva,Ek Prem Kahani] as Kiran, Banoo Mein Teri Dulhann as Sindoora Singh (for which she won the award for Best Actor in a Negative Role^[7]), Woh Rehne Waali Mehlon Ki as Kamya, and in Amber Dhara as Deepika. Punjabi has also played positive roles in Piya Ka Ghar (TV series) as Simran, Maryada: Lekin Kab Tak as Uttara and Kyun Hota Hai Pyaar as Ramya. She was also seen in Parvarrish as Mandira in Sony TV. She was part of second season of Comedy Circus comedy show on Sony TV, in Nautanki the Comedy theatre and a contestant in Bigg Boss 7 in Colors. In the show, she has been very close to Pratyusha Banerjee. She, along with Indian wrestler, Sangram Singh broke the international record of surviving in a box for around 42 hours which was earlier set by Big Brother UK for more than 26 hours. Kamya Punjabi to star in Darr Sabko Lagta Hai.^[8]

Kamya was married to Bunty Negi.^[9] They both have a daughter named Aara (born 2009). In 2013, a month before entering the Bigg Boss house, the couple filed for divorce. On the show Bigg Boss, she broke down in tears after thinking about her divorce and how she misses her 4-year-old daughter.

Fiction shows

Reality shows

Awards and nominations