In her later career, she moved into supporting roles, often playing the wise or modern grandmother to a new generation of stars, such as Aishwarya Rai in (1998) and Kareena Kapoor in (2004).

(Third Marriage): While filming En Uyir Kannamma (1988), she met actor-director M. Sivachandran. The two fell in love and married in 1987 . In 2000, the couple adopted a daughter named . Notable Romantic Storylines (On-Screen)

, who followed in her mother’s footsteps to become a popular actress in the 1990s. Mohan Sharma (1975–1980): Lakshmi fell in love with her co-star Mohan Sharma

In recent years, the narrative surrounding Menon has shifted from her film roles to her personal life and external controversies.

Before the age of explicit love confessions, Vietnam Veedu offered a masterclass in subtle romance. Directed by K. Balachander, the film featured Lakshmi as the caretaker of a house she doesn’t own. Her romance with Muthuraman’s character is not about flowers or songs; it is about duty, respect, and the silent tragedy of poverty. The romantic storyline here is a slow burn—two adults falling in love not through dialogue, but through shared glances and shared burdens. This role earned her the National Film Award for Best Actress, proving that in her universe, romance was a vehicle for social commentary.