Liu graduated from the BFA's directing program, in which she enrolled at the age of sixteen, along with directors such as Tian Zhuangzhuang and Chen Kaige. Upon graduation, she was assigned to the Xiaoxing Film Studio where she directed her first solo work, Stories of the Voyage in 1985 at the age of 23.

In 1987, she directed the war film Women on the Long March, about eight female Red Army soldiers who find themselves separated from their main force during the Long March. In the early 1990s, Liu filmed two important works, 1993's Chatterbox, and 1994's Family Scandal (co-directed with Cui Xiaoqin). Both films garnered international notice, particularly the former, which won an award at the Venice International Film Festival. Chatterbox was a personal work as well, with Liu receiving no salary for the film and borrowing heavily to bring it to an international venue.

Liu Miaomiao has also shifted her career into filming television programs and films.