He trained in the Method school of acting at NSD, which is involved in Street Theatre. After his training in New Delhi, he moved to Mumbai and started his film career with Reena Roy, one of the well-known actresses of that time. He gained notoriety for his horrific portrayal of a rapist B. R. Chopra banner's Insaf Ka Tarazu, in which he assaulted the heroine Zeenat Aman, and later her sister, and in the end, is shot and killed by the heroine. He then became a consistent feature of the B. R. Chopra banner and acted in Nikaah with Deepak Parashar and Salma Agha and in Aaj Ki Aawaz with Smita Patil.
Raj Babbar entered politics by joining Janata Dal in 1989, which was led by V. P. Singh.
From 1994 to 1999 he was a member of the Rajya Sabha. He was re-elected in the 14th Lok Sabha elections for his second term in 2004. He was suspended from Samajwadi Party in 2006. Later he joined Indian National Congress in 2008 and was elected for his fourth term as Member of Parliament in 2009, by defeating Dimple Yadav, wife of Akhilesh Yadav and daughter-in-law of Mulayam Singh Yadav.[7] In the 2014 Lok Sabha elections, he contested from Ghaziabad and lost to General V. K. Singh.[8] He was appointed as the president of Uttar Pradesh congress committee (UPCC), but in 2019 elections he couldn't even manage to save his own seat and lost to Rajkumar Chahar of the Bharatiya Janata Party by a huge margin of 4,95,065 votes.
Raj Babbar, in the capacity of Congress spokesman, created controversy in 2013, by stating that Rs.12 is sufficient for a common man to get a full meal in Mumbai, which drew severe criticism.[9] He also said that a poor person in India can get full meals two times a day, within Rs. 28 to 32 and opposition parties termed Raj Babbar's statement laughable.[9] Later, he regretted his comments.[10] In July 2013, he compared Narendra Modi to Adolf Hitler, which also created controversy.[11]
He has two younger brothers, Kishan and Vinod (deceased) and four younger sisters. Raj Babbar's niece Kajri Babbar is an upcoming filmmaker.[14][15][16][17]