Tanwar was born on 12 January 1973 to Rajendra Singh Tanwar, a retired CBI officer, in a middle-class family from Alwar, Rajasthan, India. She was educated in many Kendriya Vidyalayas before graduating from Lady Shri Ram College in New Delhi. Prior to this, in 1990, after completing her pre-university course, she worked as a sales trainee at a five-star hotel. In college, she was the secretary and President of the dramatic society. After graduation, while preparing for the entrance tests to the administrative services and mass communications, she gave an audition for the national broadcaster Doordarshan's film songs based program Albela Sur Mela in 1998; she was selected as the presenter.
After her television debut in 1998 with Albela Sur Mela, Tanwar gained fame for her role of Parvati Agarwal in the soap opera, Kahaani Ghar Ghar Kii. Between 2011 and 2014, she played Priya Kapoor, opposite Ram Kapoor, in Bade Achhe Lagte Hain.
In December 2012, she made an appearance in Kaun Banega Crorepati.
