Kapoor's final release of 2001 was Kabhi Khushi Kabhie Gham..., a melodrama, in which she was featured as part of an ensemble cast that included Amitabh Bachchan, Jaya Bachchan, Shahrukh Khan, Kajol and Hrithik Roshan. Directed by Karan Johar, the movie was a major financial and critical success and became India's second highest-grossing film of the year, as well as Kapoor's highest-grossing movie up until then. It also performed well internationally and became the biggest Bollywood success of all time in the overseas market up until then, earning over Indian Rupee1000 .7 worldwide. Kapoor's performance as "Poo", a good-natured but superficial girl, was described as "one of the main highlights of the film and her portrayal earned her a Filmfare Best Supporting Actress nomination.
During 2002 and 2003, Kapoor experienced a setback in her career. She was in six films—Mujhse Dosti Karoge!, Jeena Sirf Merre Liye, Talaash: The Hunt Begins..., Khushi, Main Prem Ki Diwani Hoon, and the four-hour war epic LOC Kargil—all of which proved critically and commercially unsuccessful in India Kapoor's performances were often identified by critics as unoriginal and repetitive, with little inspiration. They expressed concern that she was becoming typecast, but these negative reviews were fundamental in motivating her to improve her integrity as an actress in subsequent years by accepting more demanding roles
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