In the late 1980s and early 1990s, Graham appeared in several films, including the critically acclaimed Drugstore Cowboy, and had a recurring role on the popular television series "Twin Peaks." She eventually enrolled at the University of California at Los Angeles but dropped out after two years to pursue acting full time. Over the next few years, she appeared in a number of movies, including Six Degrees of Separation, Even Cowgirls Get the Blues and Swingers.
In 1997, Graham's performance as porn actress Roller Girl in Boogie Nights thrust her into stardom. Her other notable films include Austin Powers: The Spy Who Shagged Me, Bowfinger and The Guru.