Hema Malini read Irving Wallace's novel "The Second Lady" (1980), where she got the story idea for "Sharara" and decided that her brother produce it under her home banner. Having worked with director S. V. Rajendra Singh in the super successful "Meri Awaaz Suno" Hema decided to sign him. The film had only 3 songs and very good background score by Laxmikant-Pyarelal. Raaj Kumar took lessons to play the violin and to waltz for the beautiful Lata Mangeshkar song ' shabnam ka yeh khatra hai.....'.
The Great Gambler's background music was used in the movie.
Hema Malini stated as producers of the film she did not earn any profits. It was a very expensive film that needed a huge budget. But she also stated she did not lose any money. The film broke even.
Director S. V. Rajendra Singh, after completing 'Sharara' started another big film with Dilip kumar and Rekha, 'Aag ka Dariya'. Hema Malini introduced him to Dilip Kumar who was bowled over by his script. The movie unfortunately remains unreleased.
Shatrughan Sinha's new born twins Luv Kush and Hema Malini' s daughter Esha were always on the films sets during the making of the film.