Agarwal was born to a Gujarati family. Her father, Shashank, is in the hotel business and her mother, Veema, is a homemaker. She has two siblings. At around 14 years of age, actor Sunil Shetty spotted her and invited her to dance on stage in Philadelphia, Pennsylvania. At age 16, she made her debut with Paagalpan. made her Telugu film debut in Nuvvu Naaku Nachav with actor Venkatesh. She was one of the few non-Telugu speaking actresses to work with noted Indian film stars Chiranjeevi, Nandamuri Balakrishna, Akkineni Nagarjuna, Mahesh Babu, Ravi Teja, and NTR Junior. In 2007 Aarthi married Tasval Kumar, a U.S.-based Indian software engineer; the couple divorced in 2009. On 6 June 2015, Agarwal was pronounced dead on arrival at AtlantiCare Regional Medical Center in Atlantic City, New Jersey. Agarwal, who had undergone a liposuction surgery six weeks prior, had severe breathing problems before her death. Her manager stated the cause of her death was cardiac arrest.