Braga made her first appearances in pornochanchadas. In 1975, she became famous in Brazil with the telenovela Gabriela (from a book by Jorge Amado). Another notable Jorge Amado adaptation she played the lead role was the film Dona Flor e Seus Dois Maridos ("Dona Flor and Her Two Husbands") in 1976.

She achieved world fame with her title role in the film Gabriela in 1983. Braga then moved to the United States where she acted in movies such as Kiss of the Spider Woman and Angel Eyes. She has guest starred in television series such as Alias and Sex and the City. Braga is also known to have been romantically linked to Robert Redford.

Her niece, Alice Braga, starred in the internationally acclaimed feature film, City of God.