Amrita comes from a well-to-do Chitrapur Saraswat Brahmin family. She has a sister named Preeta and there is an on-going debate in the media if Preeta is Rao's twin sister. She speaks English, Hindi, Marathi & Konkani.
She entered the world of modelling quite by chance, when she auditioned for an advertising film for Fairever Face Cream. She was selected for the film, and since then appeared in a number of television spots for several products.
She made her cinematic debut in the 2002 film Ab Ke Baras, but gained recognition only after the success of her 2003 film, Ishq Vishk. Two later films, Masti and Main Hoon Na, also did well at the box office. However, her recent movies have not done as well. She is currently working on Sooraj R. Barjatya's production, Vivaah, opposite Shahid Kapoor.