Starting in the mid 1990s, Kapadia became more selective about her work, and her screen appearances in the following decades were fewer. She was noted for her portrayal of middle-aged, complicated women courted by younger men in "Dil Chahta Hai" (2001) and the American production "Leela" (2002). Her later credits include leading roles in "Hum Kaun Hai?" (2004), "Pyaar Mein Twist" (2005), "Phir Kabhi" (2008), "Tum Milo Toh Sahi" (2010) and "What the Fish" (2013), but she attained more success with character roles in "Being Cyrus" (2006), "Luck by Chance" (2009), "Dabangg" (2010), "Cocktail" (2012) and "Finding Fanny" (2014). Some of these roles were cited in the media as a departure from the regular portrayals of women her age in Hindi films. A role in the Hollywood thriller "Tenet" (2020) brought her further recognition. Kapadia is the mother of Twinkle Khanna and Rinke Khanna, both of whom are former actresses.