She has two sisters, Meghna Reddy and Sushma Reddy. She did her schooling at Bombay Scottish School in Mahim, Mumbai and graduated from Sydenham College.
Reddy first appeared in the ghazal singer Pankaj Udhas's "Aur Aahista" music video when she was a graduate.
She caught the attention of Bollywood and was cast in a pivotal role in the 2002 Hindi film Maine Dil Tujhko Diya. In 2004, she appeared in Musafir, in which she played a sexy role.
Apart from doing Bollywood movies, Reddy has also appeared in quite a few Telugu, Malayalam and Tamil films. She appeared in the Tamil film Vaaranam Aayiram directed by Gautham Menon, opposite Surya Sivakumar, which was a blockbuster.
Reddy's acting and modest portrayal of a confident and down-to-earth girl earned her rave reviews.