On 6 January 2017, Puri died at the age of 66, after having a heart attack at his residence in Andheri, Mumbai. He was honored at the 89th Academy Awards in memorium segment for his contribution in Indian and world cinema.

Puri's first film was Chor Chor Chhup ja, a children's film. During this time, to make ends meet he also worked at the Actors' Studio, where future actors such as Gulshan Grover and Anil Kapoor would be his students.

Subsequently Puri worked in numerous Indian films, as well as many films produced in the United Kingdom and the United States.

Puri made his debut in the mainstream films genre in the 1976 Marathi film Ghashiram Kotwal, based on a Marathi play of the same name by Vijay Tendulkar. It was directed by K. Hariharan and Mani Kaul in cooperation with 16 graduates of the FTII. He has claimed that he was paid "peanuts" for his best work. Along with Amrish Puri, Naseeruddin Shah, Shabana Azmi and Smita Patil, he was among the main actors who starred in what was then referred to as art films such as Bhavni Bhavai (1980), Sadgati (1981), Ardh Satya (1982), Mirch Masala (1986) and Dharavi (1992).

He was critically acclaimed for his performances in many unconventional roles such as a victimized tribal in Aakrosh (1980); Jimmy's manager in Disco Dancer (1982); a police inspector in Ardh Satya (1982), for which he got the National Film Award for Best Actor; Vinod's uncle in Zamana (1985 film) the leader of a cell of Sikh militants in Maachis (1996); as a tough cop again in the commercial film Gupt in 1997; and as the courageous father of a martyred soldier in Dhoop (2003).