The 1987 Social problem film, Agni Putrudu, and the 1988 action thriller, Aakhari Poratam, were screened at the 11th and 12th International Film Festival of India respectively in the mainstream section.[6] In 1992, he directed the melodrama Gharana Mogudu, premiered at the 1993 International Film Festival of India in the mainstream section,[7] which became the first Telugu film to gross over ₹ 10 crore at the box office.[8] Next he directed the instant hit Allari Priyudu, which was also premiered at the 1994 International Film Festival of India in the mainstream section.

In 1997, he scripted and directed the historical biographical film, Annamayya which won two National Film Awards, was also premiered at the 1998 International Film Festival of India in the mainstream section.[10] Subsequently he directed, critically acclaimed biographical devotional films such as Sri Manjunatha (2001), Sri Ramadasu (2006), Pandurangadu (2008), Shirdi Sai (2012), and Om Namo Venkatesaya (2017) which received several state Nandi Awards. On the other hand, Rao has directed several action films which were box office hits, and is known for portraying his lead actresses in a sensuous manner.