Arora was born in Mumbai, India to a Malayali mother, Joyce Polycarp and a Punjabi father, Anil Arora. she is the sister of Malaika Arora. Her brother-in-law is Arbaaz Khan, the brother of Salman Khan.
She was romantically linked to Kevin Otter, Ashmit Patel and Upen Patel. She also dated the British-Pakistani cricketer Usman Afzaal.
She made her debut opposite Fardeen Khan with the film Kitne Door Kitne Paas which was not successful at the box office. Her first successful movie was Awara Paagal Deewana. A series of flop followed, among them the controversial Girlfriend (2004) opposite Isha Koppikar, a movie about a lesbian relationship. Her latest release was Fight Club: Member's Only(2006 Film) produced by Sohail Khan. She appeared on the show Koffee with Karan, hosted by Karan Johar with her sister.
Her next movies will be Deha, Jeet: Feel the Force, all to be released in 2008. In 2007, Red -The Dark Side released starring Aftab Sivdastani, Celina Jaitley and Amrita Arora. There was a controversy over the twenty-seven minute sex scene. Red received mixed reviews at the Box Office. Her upcoming film Raakh will release this august in which she will be paired with Sohail.
She made a special appearance in Farah Khan's latest film Om Shanti Om in a song named deewangi along with her sister & brother-in-law.