She was a housemate on Bigg Boss, the Indian version of Celebrity Big Brother, produced by Endemol India for Sony Entertainment Television. She finished runner-up. She was also the contestant of khatron ke khiladi level 2 the Indian version of Fear Factor.
During the 2006 Lakme Fashion Week in Mumbai, Carol Gracias experienced a "wardrobe malfunction", when her halter top slipped off, completely exposing her breasts. Carol recovered quickly enough and completed the walk, holding her top in place. This minor incident caused a huge furore, with some members of the public accusing the organisers of the show of promoting obscenity. The matter was raised in the Maharashtra Legislative Assembly, where members condemned the organisers of the show.
Later, a local court ordered the police to investigate the incident, after a social activist, Prakash Rajdev, registered an FIR against the organisers of Lakme India Fashion Week and the models involved, alleging that the incidents were intentional and the models indulged in "nudity and obscenity" which constituted offences under the Indian Penal Code.