Sharma was born in Mathura, Uttar Pradesh, India. Sharma pursued his B.Sc. at Khalsa College, Mumbai, when he became interested in cinematography. His first job in the film industry was as an assistant of Baldev Raj Chopra, on films such as Pati Patni Aur Woh, The Burning Train and Insaf Ka Tarazu. He also had minor parts in The Burning Train and Insaf Ka Tarazu. Sharma made his directional debut in 1981 with Shradhanjali, starring Raakhee,. In the early 1980s, he became a producer with Elaan-E-Jung, which he also directed. During the 1990s, he directed films such as Farishtay and Maharaja. He has worked with various artists including Amitabh Bachchan, Jayaprada, Sridevi, Akshay Kumar, Karisma Kapoor, Govinda, and Manisha Koirala. Sharma started working with Dharmendra in 1987 when he directed Hukumat, which became the highest-grossing film of the year. Over the following years, Dharmendra and Anil Sharma worked together on Elaan-E-Jung, Farishtay, Tahalka and Apne. In 2001, Sharma directed the film ' starring Dharmendra's son Sunny Deol and Amisha Patel. The film was a commercial success, and critically appreciated as well. Sharma received his first award nominations for Best Director and Best Film in different award ceremonies. In that same year, he also produced the film Aashiq, directed by Indra Kumar and starring Karisma Kapoor and Bobby Deol, the younger son of Dharmendra. In 2003, Sharma once again collaborated with Sunny Deol in the film ' starring Preity Zinta and Priyanka Chopra. The film, at its time, was considered to be the most expensive film ever made in Bollywood. The film went on to be the third highest grosser of the year. In 2004, he produced the romantic thrillerMadhoshi with John Abraham and Bipasha Basu, and directed the war film Ab Tumhare Hawale Watan Saathiyo starring Amitabh Bachchan, Bobby Deol and Akshay Kumar, both of which bombed at the box office. In 2007, Sharma made a comeback when directed the family dramaApne. This film received generally favorable reviews from critics, and was also a commercial success. The film was also noted for the success it enjoyed in the overseas market, most notably in Canada, the UK and Australia. In 2010, he directed Veer, starring Salman Khan, who also wrote the script for the film followed by the action dramaSingh Saab the Great in 2013, starring Sunny Deol.