Lothar was a member of the company of the Deutsches Schauspielhaus theatre in Hamburg for many years and her performances include roles in Frank Wedekind's Lulu plays (Erdgeist (Earth Spirit) and Die Büchse der Pandora (Pandora's Box)), produced by Peter Zadek. For her first film Strange Fruits (Eisenhans) in 1983, she received the German Federal Film Prize. With Ulrich Mühe, she appeared as the victimised married couple in the original version of Michael Haneke's Funny Games in 1997. Lothar worked again with Haneke as Mrs Schober in The Piano Teacher and in The White Ribbon.