She recently starred in a reality television series Fabulous Lives of Bollywood Wives which started streaming on Netflix in 2020. Her last film was the delayed release Kasam in 2001, opposite Chunky Pandey.
She was also noticed for her appearance in the 1998 film Kuch Kuch Hota Hai, where she played herself as a VJ and in the 1999 ensemble family drama Hum Saath Saath Hain in which she played a supporting role. She also worked in the Bengali film Badnaam (1990) with Prosenjit Chatterjee. She had 5 hits opposite Chunkey Pandey, such as Aag Hi Aag (1987), Paap Ki Duniya (1988), Khatron Ke Khiladi (1988), Mitti Aur Sona (1989) and Ghar Ka Chiraag (1989). She made a popular pairing with Govinda and starred with him in 14 movies and some of their films include Love 86 (1986), Khudgarz (1987), Hatya (1988) and Taaqatwar (1989). She later became famous in 1986 for her role in the film Ilzaam opposite another debutant, Govinda. Kothari's performance in her debut film was noticed in film circles and she received offers. But the film was unsuccessful commercially.
She decided to give acting a shot and signed for the film Jawaani (1984) alongside Karan Shah, Tina Munim's nephew. Neelam was holidaying in Mumbai when she was approached by director Ramesh Behl.
After her childhood in Hong Kong, her family moved to Bangkok. She was educated at Island School, where she was a member of Rutherford house. Her family has a traditional jewellery making business, making high-class pieces. As a child, she learnt to play the keyboard and danced Jazz Ballet.