Pandey was born as Suyash Pandey on 26 September 1962 in Bombay.

Pandey worked as an instructor in acting school in 1986. He used to be senior to many junior budding artists such as Akshay Kumar.

Pandey debuted his acting career with the 1987 multi-starer film Aag Hi Aag opposite Neelam Kothari. Film producer Pahlaj Nihalani gave Pandey his first break in 1987 by signing him up for two films, his debut film and Paap Ki Duniya. His second successful film was Paap Ki Duniya with Sunny Deol and Neelam. Subsequently, Pandey appeared in many multi-hero films from 1987 to 1993. In 1988, Pandey was appreciated for his supporting role in N. Chandra’s film Tezaab featuring Anil Kapoor and Madhuri Dixit. Pandey played the character of Babban, Munna’s (Anil Kapoor) friend. For his performance in Tezaab, Pandey was nominated for the Filmfare Award for the Best Supporting Actor.

Pandey grew increasingly tired of playing second fiddle to more prominent actors, but had difficulty being seen as marketable, other than supporting household names. “I was offered hero ke bhai ka (lead actor’s brother) roles,” he said. “I (told them), ‘Boss, not happening.'” He moved to act as hero in Bangladesh films. In 1995, he was offered his first films as the lead hero in Bangladeshi films. He acted in six films between 1995 and 1997 as hero in Bangladesh and all of them were successful. Between 1997 and 2002, he received minimal work in Bollywood, playing supporting roles in low-budget films like Tirchhi Topiwale, Yeh Hai Mumbai Meri Jaan, Kaun Rokega Mujhe and Jwalamukhi.

Pandey married Bhavna Pandey in January 1998. They have two daughters, including actress Ananya Panday.

Pandey returned to Bollywood in 2003 playing minor supporting roles in Qayamat: City Under Threat, Elaan, Don: The Chase Begins Again and Apna Sapna Money Money.

In 2005, he played an underworld gangster in the Ram Gopal Varma film D – Underworld Badshah. Later, director Ram Gopal Varma roped him in for Darwaaza Bandh Rakho, a dark comedy thriller in which he played one of four robbers who hold a family hostage.

Pandey played the role of the Indo-Italian “Aakhiri Pasta” in the 2010 comedy hit Housefull followed by his reprised roles in the sequels Housefull 2 in 2012, Housefull 3 in 2016 and in Housefull 4 in 2019.