Thompson's first major film role was in a romantic comedy, The Tall Guy. Her career took a more serious turn with a series of critically acclaimed performances and films, beginning with 1992's Howards End (for which she received an Oscar for Best Actress); the part of Gareth Peirce, the lawyer for the Guildford Four, in In the Name of the Father; The Remains of the Day opposite Anthony Hopkins; and as the British painter Dora Carrington in the film Carrington.

She won her next Oscar in 1996, for Best Adapted Screenplay for her screenplay adaptation of Jane Austen's Sense and Sensibility, a film in which she also played the Oscar-nominated lead role opposite Hugh Grant. She has said that she keeps both of her award statues in her downstairs bathroom, citing embarrassment at placing them in a more prominent place.[citation needed]

One of Thompson's earliest television appearances was in 1984 alongside Stephen Fry and Hugh Laurie as guest stars on the sitcom The Young One