She discontinued her acting career after production of her last film Mr Ya Miss in 2005 (which she had also written and directed) was received poorly and critically panned. Mali paid her tribute to Madhuri Dixit by playing an aspiring actress inspired by Madhuri in the movie Main Madhuri Dixit Banna Chahti Hoon. She received a Filmfare nomination for the Best Actress in a Supporting Role for Company.
In 2010, she made her comeback to films with And Once Again directed by Amol Palekar.