Figo started his career at Sporting CP, making his league debut on 1 April 1990 during the 1989–90 season as a substitute for Marlon Brandão in a 1–0 home win against Marítimo. On 7 December 1991, Figo scored his first goal against Torreense in the 1991–92 season, equalising as Sporting won 2–1. He won his first senior international cap in 1991. Prior to that, he won the 1991 FIFA Under-20 World Championships and Under-16 European Championships with Portugal junior sides alongside Rui Costa and João Pinto. He was also a significant part of Portugal’s “Golden Generation.” In his final season at Sporting he won the 1994–95 Portuguese Cup.

The leader of Portugal’s “Golden Generation,” Figo won a FIFA World Youth Championship in 1991, the same year he made his senior debut against Luxembourg on 16 October 1991, in a friendly match that ended 1–1 when he was only 18 years old. His first goal equalised in a 2–1 friendly victory over Bulgaria in Paris on 11 November 1992. Figo scored three goals in eight qualifying games for UEFA Euro 1996, as his country reached the continental tournament for the first time in 12 years. In the final group game at the tournament, against Croatia at the City Ground in Nottingham, Figo opened a 3–0 victory with a fourth-minute strike; the result sent Portugal into the quarter-finals as group winners ahead of their opponents.

In 1995, Figo looked poised to join one of the big clubs of Europe, but a dispute between Italian clubs Juventus and Parma, with Figo having signed contracts with both clubs, resulted in an Italian two-year transfer ban on him. Eventually, Figo made a move to Spanish giants Barcelona for a £2.25 million fee, being loaned back for the remainder of the season due to a rule prohibiting Portuguese players from signing for foreign clubs outside a fixed period. This rule had prevented Figo from joining English club Manchester City, where he had been recommended by his former Sporting manager Malcolm Allison for a fee of around £1.2 million.

Figo has appeared in commercials for the sportswear company Nike. In 1996, he starred in a Nike commercial titled “Good vs Evil” in a gladiatorial game set in a Roman amphitheatre. Appearing alongside football players from around the world, including Ronaldo, Paolo Maldini, Eric Cantona, Patrick Kluivert and Jorge Campos, they defend “the beautiful game” against a team of demonic warriors, before it culminates with Cantona striking the ball and destroying evil.

In July 2000, Figo made a surprising and controversial €62 million move to Barcelona’s bitter rivals Real Madrid. Real Madrid met the buy out clause in Figo’s contract at Barcelona, a new world record fee, and his arrival at Madrid signalled the beginning of Florentino Pérez’s Galáctico era of global stars signed by the club every year. Figo became the new focus of the Barcelona–Real Madrid rivalry, with Barcelona fans feeling betrayed by his transfer and turned against him. His move to Madrid was significant due to his status as a star player at Barcelona, reliable and always committed to the cause as a team leader. One of his Barcelona teammates stated, “Our plan was simple: give the ball to Luís. He never, ever hid.” Although now wearing the white shirt of Real Madrid, he won the Ballon d’Or award in November 2000, largely for what he did for Barcelona where he became the best in the world.

When Figo returned to Barcelona for the first time in a Real Madrid shirt on 21 October 2000, the noise at Camp Nou was deafening. There were banners hung around the stadium with words like “Traitor”, “Judas”, “Scum”, and “Mercenary”. Figo was mercilessly taunted throughout, and when he came out of the tunnel and ran onto the field the jeers of almost 98,000 Barcelona fans escalated, with a visibly shocked Figo putting his fingers to his ears. When El Clásico started, each time Figo got the ball the noise rose with insults and missiles flying such as oranges, bottles, cigarette lighters and mobile phones. The regular corner taker for Madrid, Figo did not take any corners at the Camp Nou to avoid being in close proximity to the fans. Barcelona were victorious, winning 2–0, and Real Madrid President Florentino Pérez stated after the match, “The atmosphere got to us all.” Madrid defender Iván Campo commented,

Figo featured in all ten of Portugal’s qualifiers for the next European Championship, scoring three times in the process. On 12 June 2000, in their opening game of the tournament in Eindhoven, he scored Portugal’s first goal as they came from behind to beat England 3–2, again advancing as group winners to be eliminated in the semi-finals. He was rested by Humberto Coelho for the final group match against Germany in Rotterdam, breaking a chain of 32 consecutive international appearances. His only hat-trick for the national team came on 15 August 2001, when he netted all of the goals in a 3–0 friendly victory over Moldova at the Estádio de São Luís in Faro.

With six goals in nine matches, Figo helped Portugal qualify for the 2002 FIFA World Cup; on 2 June 2001, in the qualifier against the Republic of Ireland at Lansdowne Road, he served as captain for the first time on his 74th cap and scored the equaliser for a 1–1 draw. In their first World Cup since 1986, Portugal suffered group stage elimination while Figo failed to score a goal.

Figo’s second game back at the Camp Nou, on 23 November 2002, produced one of the defining images of the Barcelona–Real Madrid rivalry. There was no sign of the hatred or the hurt subsiding, and every time he came within range of the Barcelona fans, beer cans, lighters, bottles and golf balls flew. Figo commented, “I was worried that some madman might lose his head.” This time, Figo had decided that he would take corners, as well as throw-ins, and midway through the second half Madrid won a corner. Amid a shower of flying objects, it took Figo two minutes to take it. Another corner followed on the other side, and as Figo walked across, he slowed to pick up the missiles and as he prepared to take the corner he moved away some of the debris while giving an ironic thumbs-up and smiling. Every time he began his run-up to take the corner, another missile would land which was repeated over and over, until the referee Luis Medina Cantalejo suspended the game for almost 20 minutes. During the break in play, the defining image of the rivalry, a pig’s head, was picked up on camera, which was in among the debris near the corner flag.

On 18 February 2004, Figo earned his 100th cap in a 1–1 friendly draw with England at the Estádio Algarve, playing as captain despite regular skipper Fernando Couto being in the starting line-up. Later that year at the European Championship on home soil, he captained the side after Couto was dropped. He announced his retirement from international football following the Euro 2004 final upset-defeat by Greece due to an alleged rift between him and national coach Luiz Felipe Scolari, although this was denied. In June 2005, he reversed his decision and returned for the 2006 World Cup qualifying wins against Slovakia and Estonia under Scolari.

Figo left Real Madrid to join the Italian club Inter Milan in the middle of 2005 on a free transfer after his contract with Madrid had expired. This meant that Figo would finally be able to play for a club in Italy, something he had the chance to do before his move to Barcelona, but was scuppered due to a dispute between the two clubs interested, Juventus and Parma. During the middle of 2008, Figo’s compatriot José Mourinho joined Inter on a managerial level. This has been said to please Figo, as he would have several Portuguese teammates during the remainder of his stay at Inter. On 16 May 2009, Figo announced his retirement from football, the same day Inter won the 2008–09 title, and re-confirmed this on 30 May; his final game was on 31 May against Atalanta at the San Siro. At Javier Zanetti’s insistence, Figo captained the side for his last match. He received a standing ovation from the crowd as he was substituted by Davide Santon. The free-kick he scored in extra time against Roma during the Supercoppa Italiana was his most memorable moment in Italy.

Figo said, “I am leaving football, not Inter.” He was interviewed by Inter Channel after his last game against Atalanta and also said, “I hope to be able to help this club to become even greater also after my retirement. I will certainly work for Inter in the future on the club board. I never imagined that I was going to remain here for such a long time. What I will never forget is the love that I have received since my first day here from my teammates and president Massimo Moratti. I will never forget it; Inter has given me the chance to start a winning cycle with some extraordinary people.” Figo was on the sidelines when Inter won the 2009–10 UEFA Champions League on 22 May 2010.

Figo would spend five seasons at Madrid, with his final success being the 2003 La Liga title. In April 2013, Figo was named by the sports newspaper Marca as a member of the “Best foreign eleven in Real Madrid’s history.”

Figo features in EA Sports’ FIFA video game series; he was named in the Ultimate Team Legends in FIFA 14. In 2015, the arcade game company Konami announced that Figo would feature in their football video game Pro Evolution Soccer 2016 as one of the new myClub Legends. In 2018, Figo was added as an icon to the Ultimate Team in FIFA 19.

On 28 January 2015, Figo announced his intention to run against incumbent Sepp Blatter for the position of FIFA president. His endorsers included José Mourinho and David Beckham. In his manifesto, Figo mentioned his support for expanding the World Cup to 48-team finals tournaments, and promised greater investment in grassroots football and national federations. Considered an outsider compared to Blatter and the other two candidates – Michael van Praag and Prince Ali of Jordan – Figo withdrew from the election campaign on 21 May, stating that he did not want to be given “absolute power.”