Sonali was born in Mumbai in a Marathi Brahmin family. Sonali studied in Bangalore and Mumbai in Kendriya Vidyalaya Antop Hill, Sion and Holy Cross High School Thane. She married film actor/director Goldie Behl, on 12 November 2002. On 9 August 2005 she gave birth to a son, Ranveer, at Breach Candy Hospital.

Bendre started out as a model before being selected for the "Star Dust Talent Search". She was invited to Mumbai and received training from a variety of top actors and performers of the Indian film industry. Her first role was in Aag (1994) opposite Govinda. Though she initially struggled to be a successful actress, she was eventually given critical acclaim for her performances in films like Bhai (1997),Murari (Telugu film) Sarfarosh, Zakhm, Duplicate, Kadhalar Dhinam (Tamil film), Hum Saath-Saath Hain: We Stand United (1999), Tera Mera Saath Rahey and Anaahat (2003) among many others. She is also known for being one of the few actresses who acted opposite all top four Khans (Aamir, Shahrukh, Salman and Saif). She has also starred opposite some of the other biggest names in bollywood such as Akshay Kumar Suniel Shetty, Ajay Devgan, Sanjay Dutt and Anil Kapoor.

Next to her well-received performances, she was also recognized as a graceful dancer through films like Gaddar(1995),Sapoot, Bombay, Lajja and Major Saab to name a few. She is frequently listed as one of the top most beautiful Bollywood actress. Bendre is set to star in the theatre in a play called, Aap Ki Soniya.

She also hosted a dance show on television named "Kya Masti Kya Dhoom....!" and now she is going to be one of the judges of Indian Idol in Sony Entertainment television. In 2003, she made a special appearance as Shahrukh Khan's doctor in Kal Ho Naa Ho (produced by Karan Johar), which also starred Saif Ali Khan and Preity Zinta. She also hosted the 50th Filmfare Awards with Saif Ali Khan and Farida Jalal on 26 February 2005. She was a judge on Indian Idol 4 and India's Got Talent.

She was once involved in an affair with Pakistan Cricket Player Shahid Afridi, but both of them denied the scandal. She also was ex-girlfriend of Khalil Saighani.

In 1995, she won the Filmfare Lux New Face Award. In 2001 she also won the Star Screen Award Best Supporting Actress for her performance in Hamara Dil Aapke Paas Hai where she co-starred with Anil Kapoor and Aishwarya Rai. She was the only cast member who was nominated and won the award. She was appreciated for her comic performances in films like Love Ke Liye Kuchh Bhi Karega.