Supernatural thriller Dangerous Ishq is director Vikram Bhatt's second 3D film, and follows the successful Haunted.
According to IANS, Kapoor will play five different characters in five different time periods. The film will depict significant historical events including the partition of India and the assassination of prime minister Indira Gandhi.
Speaking to The Times of India, Bhatt said: "Karisma's character will go back in time to four different eras, including the role in present time, so it's a total of five roles. The story opens in 1498 and then moves through various eras to contemporary times. Karisma will start with playing Mirabai and then move forward in time."
Commenting on Kapoor's involvement in the film, he said: "When I first gave Karisma a narration, she loved the story and the script. It's a woman-centric film and she plays the main character. She has always been a hard-working actress. But I feel this film is going to be the biggest challenge of her career. Dangerous Ishq will take her to a whole new level as an actor."
Kapoor told The Indian Express: "It's a role I haven't done before. The script is very interesting and working in the 3D format will be a new experience for me."
Kapoor will star alongside five different leading men and will be required to undertake extensive training in martial arts for the action sequences.
The 36-year-old actress took a break from acting after her marriage to industrialist Sanjay Kapur in 2003. She was last seen in the film Mere Jeevan Saathi in 2006 and made a guest appearance for the title song in Om Shanti Om.