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Anderson has directed music videos for artists including Fiona Apple, Radiohead, Haim, Joanna Newsom, Aimee Mann, Jon Brion and Michael Penn. Anderson directed a short film for HAIM in 2017, Valentine, featuring three musical performances from the band. In 2019, Anderson directed the short film Anima, starring singer Thom Yorke and featuring music from Yorke's Anima album. It was screened in select IMAX theatres on June 26 and released on Netflix on June 27.

As of 2016, Anderson is the only person to win all three director prizes from the three major international film festivals (Cannes, Berlin, Venice)).

Anderson directed Junun, a 2015 documentary about the making of the the album by composer and Radiohead guitarist Jonny Greenwood, Radiohead producer Nigel Godrich, Israeli composer Shye Ben Tzur, and a group of Indian musicians. Most of the performances were recorded at the 15th-century Mehrangarh Fort in the Indian state of Rajasthan. Junun premiered at the 2015 New York Film Festival.

Anderson frequently collaborates with many actors and crew, carrying them over from film to film. Anderson has referred to his regular actors as "my little rep company" that has included John C. Reilly, Philip Baker Hall, Julianne Moore, William H. Macy, Melora Walters, and most prominently, the late Philip Seymour Hoffman. Luis Guzmán is also considered Anderson's regular. Hoffman acted in Anderson's first four films as well as The Master. Except for Paul F. Tompkins, Kevin Breznahan and Jim Meskimen, who all had equally minor roles in Magnolia, There Will Be Blood had an entirely new cast. Anderson is one of three directors – the others being Jim Sheridan and Martin Scorsese – with whom Daniel Day-Lewis has collaborated more than once. Robert Elswit has been cinematographer for all of Anderson's films except The Master, which was shot by Mihai Mălaimare Jr. and Phantom Thread which has no credited cinematographer. Jon Brion served as composer for Hard Eight, Magnolia and Punch-Drunk Love, and Jonny Greenwood of Radiohead for every film since. Dylan Tichenor edited Boogie Nights, Magnolia, There Will Be Blood, and Phantom Thread. Anderson also regularly works with producing partners, JoAnne Sellar, Scott Rudin, Michael De Luca and Daniel Lupi, as well as casting director Cassandra Kulukundis.

Other directors have also praised him. In an interview with Jan Aghed, Ingmar Bergman referenced Magnolia as an example of the strength of American cinema. Sam Mendes referred to Anderson as "a true auteur – and there are very few of those who I would classify as geniuses". In his acceptance speech for the Golden Globe Award for Best Director, Ben Affleck compared Anderson to Orson Welles.

In December 2009, Anderson was working on a new project about a "charismatic intellectual" who starts a new religion in the 1950s. An associate of Anderson stated that the idea for the film had been in Anderson's head for about twelve years. The Master was released on September 14, 2012 in North America to critical acclaim. The film follows an alcoholic World War II veteran, who meets the leader of a religious movement known as "The Cause". Though the film makes no reference to the movement, it has "long been widely assumed to be based on Scientology." The film received three nominations at the 85th Academy Awards, including for Joaquin Phoenix for Best Leading Actor, Philip Seymour Hoffman for Best Supporting Actor and Amy Adams for Best Supporting Actress.

Production of the film adaptation for Thomas Pynchon's 2009 novel Inherent Vice began in May 2013, and ended in August of the same year. The film marked the first time that Pynchon allowed his work to be adapted for the screen, and saw Anderson work with Phoenix for a second time. The supporting cast includes Owen Wilson, Reese Witherspoon, Jena Malone, Martin Short, Benicio Del Toro, Katherine Waterston and Josh Brolin. Following its release in December 2014, the film received two nominations at the 87th Academy Awards, including for Best Adapted Screenplay and Best Costume Design.

Anderson's 2007 film There Will Be Blood, about an oil prospector during the Southern California oil boom, achieved major critical and commercial success and was often cited as one of the greatest films of the 2000s. This was followed by The Master in 2012 and Inherent Vice in 2014. Anderson's eighth film, Phantom Thread, was released in 2017. He has directed music videos for artists including Fiona Apple, Radiohead, Haim, Joanna Newsom, Aimee Mann, Jon Brion and Michael Penn, and has also directed a documentary, Junun (2015), about the making of the album in India.

There Will Be Blood (2007) was loosely based on Upton Sinclair's novel Oil!. It follows a ruthless silver miner exploiting the Southern California oil boom in the early 20th century. Against a budget of $25 million, the film earned $76.1 million worldwide. There Will Be Blood received eight Academy Award nominations, tying with No Country for Old Men for the most nominations that year. Anderson was nominated for Best Picture, Best Director, and Best Adapted Screenplay, losing all three to the Coen Brothers for No Country for Old Men. Daniel Day-Lewis won the Oscar for Best Actor. Paul Dano received a BAFTA nomination for Best Supporting Actor. Anderson was nominated for Best Director from the Directors Guild of America. There Will Be Blood was regarded by some critics as one of the greatest films of the decade, some parties further declaring it one of the most accomplished American films of the modern era. David Denby of The New Yorker wrote "the young writer-director Paul Thomas Anderson has now done work that bears comparison to the greatest achievements of Griffith and Ford", while Richard Schickel proclaimed it "one of the most wholly original American movies ever made". In 2017, New York Times film critics A. O. Scott and Manohla Dargis named it the "Best Film of the 21st Century So Far".

Anderson has been called "one of the most exciting talents to come along in years" and "among the supreme talents of today." After the release of Boogie Nights and Magnolia, Anderson was praised as a wunderkind. In 2007, the American Film Institute regarded him as "one of American film's modern masters." In 2012, The Guardian ranked him number one on its list of "The 23 Best Film Directors in the World," writing "his dedication to his craft has intensified, with his disdain for PR and celebrity marking him out as the most devout filmmaker of his generation." In 2013, Entertainment Weekly named him the eighth-greatest working director, calling him "one of the most dynamic directors to emerge in the last 20 years." Peter Travers of Rolling Stone wrote that "The Master, the sixth film from the 42-year-old writer-director, affirms his position as the foremost filmmaking talent of his generation. Anderson is a rock star, the artist who knows no limits."

After the success of Magnolia, Anderson stated that he would like to work with Adam Sandler in the future and that he was determined to make his next film a comparatively shorter length of ninety minutes. The resulting feature was the romantic comedy-drama film Punch-Drunk Love (2002), starring Sandler, with Emily Watson portraying his love interest. The story centers on a beleaguered small-business owner with anger issues and seven emasculating sisters. A subplot in the film was partly based on David Phillips (also called The Pudding Guy). Sandler received critical praise for his role in his first major departure from the mainstream comedies that had made him a star. At the 2002 Cannes Film Festival, Anderson won the Best Director Award and was nominated for the Palme d'Or.

He has been in a long-term relationship with actress and comedian Maya Rudolph since 2001. They live in the San Fernando Valley with their daughters Pearl Minnie (born October 2005), Lucille (born November 2009), and Minnie Ida (born August 2013), and son Jack (born July 2011).

In 2000, Anderson wrote and directed a segment for Saturday Night Live with Ben Affleck, "SNL FANatic", based on the MTV series FANatic. He was a standby director during the 2005 filming of Robert Altman's A Prairie Home Companion for insurance purposes, as Altman was 80 years old at the time. In 2008, Anderson co-wrote and directed a 70-minute play at the Largo Theatre, comprising a series of vignettes starring Maya Rudolph and Fred Armisen, with a live score by Jon Brion.

After the success of Boogie Nights, New Line told Anderson that he could do whatever he wanted for his next film and granted him creative control. Though Anderson initially wanted to make a film that was "intimate and small-scale", the script "kept blossoming". The resulting film was the ensemble piece Magnolia (1999), which tells the story of the peculiar interaction of several individuals in the San Fernando Valley. Anderson used the music of Aimee Mann as a basis and inspiration for the film, commissioning her to write eight new songs. At the 72nd Academy Awards, the film was nominated for three Academy Awards, including for Best Supporting Actor (Tom Cruise), Best Original Song for "Save Me" by Aimee Mann and Best Original Screenplay. Anderson stated after the film's release that "what I really feel is that Magnolia is, for better or worse, the best movie I'll ever make."

In 1999, Anderson met Kubrick on the set of Eyes Wide Shut, thanks to Tom Cruise, who had been cast in Magnolia. Anderson asked Kubrick, "Do you always work with so few people?" Kubrick answered him, "‘Why? How many people do you need?" Because of this, Anderson said that he "felt like such a Hollywood asshole."

Anderson began working on the script for his next feature film during his troubles with Hard Eight, completing the script in 1995. The result was his breakout film Boogie Nights, which is based on his short film The Dirk Diggler Story and is set in the Golden Age of Porn. The film follows a nightclub dishwasher (Mark Wahlberg) who becomes a popular pornographic actor under his stage name. The script was noticed by New Line Cinema's president, Michael De Luca, who felt "totally gaga" reading it. It was released on October 10, 1997 and was a critical and commercial success. The film revived the career of Burt Reynolds, and provided breakout roles for Wahlberg and Julianne Moore. After the film's production, Reynolds refused to star in Anderson's third film Magnolia. At the 70th Academy Awards, the film was nominated for three Academy Awards, including for Best Supporting Actor (Reynolds), Best Supporting Actress (Moore) and Best Original Screenplay.

Anderson dated Fiona Apple from 1997 to 2002. During their relationship, the two used ecstasy and cocaine, with Apple describing him as having a temper leaving her "fearful and numb", throwing a chair across the room and shoving her out of his car falling to the ground.

While at the Sundance Feature Film Program, Anderson already had a deal with Rysher Entertainment to direct his first full-length feature, Sydney, retitled Hard Eight. After completing the film, Rysher re-edited it. Anderson, who still had the workprint of his original cut, submitted the film to the 1996 Cannes Film Festival, where it was shown at the Un Certain Regard section. Anderson managed to get the version released, but only after he retitled the film, and raised the $200,000 necessary to finish it; Anderson, Philip Baker Hall, Gwyneth Paltrow and John C. Reilly contributed the funding. The version that was released was Anderson's and the acclaim from the film launched his career. The film follows a senior gambler (Hall), who takes a homeless man (Reilly) under his wing, while he becomes romantically involved with a troubled waitress (Paltrow). It also featured Philip Seymour Hoffman as an arrogant gambler, beginning a five-film collaboration between the pair. In his review of the film, Chicago Sun-Times critic Roger Ebert wrote, "Movies like Hard Eight remind me of what original, compelling characters the movies can sometimes give us."

For $10,000, made up of gambling winnings, his girlfriend's credit card, and money his father set aside for him for college, Anderson made Cigarettes & Coffee (1993), a short film connecting multiple story lines with a twenty-dollar bill. The film was screened at the 1993 Sundance Festival Shorts Program. He decided to expand the film into a feature-length film and was subsequently invited to the 1994 Sundance Feature Film Program. Michael Caton-Jones served as Anderson's mentor. He saw Anderson as someone with "talent and a fully formed creative voice but not much hands-on experience" and gave him some hard and practical lessons.

Anderson was involved in filmmaking from a young age, and never really had an alternative plan to directing films. He made his first film when he was eight, and started making films on a Betamax video camera that his father bought in 1982. He later started using 8 mm film, but realized that video was easier. He began writing in adolescence, and began experimenting with a Bolex sixteen millimeter camera. After years of experimenting with "standard fare", he wrote and filmed his first real production as a senior in high school at Montclair Prep using money he earned cleaning cages at a pet store. The film was a 30-minute mockumentary shot on video called The Dirk Diggler Story (1988), about a pornography star; the story was inspired by John Holmes, who also served as a major inspiration for Boogie Nights.

Paul Thomas Anderson (born June 26, 1970) is an American filmmaker. Born in Los Angeles, Anderson developed an interest in filmmaking from a young age. An alumnus of the Sundance Institute, Anderson made his feature film debut with Hard Eight in 1996. He found critical and commercial success with Boogie Nights (1997), set during the Golden Age of Porn, and received further accolades with Magnolia (1999), an ensemble piece set in the San Fernando Valley, and Punch-Drunk Love (2002), a romantic comedy-drama film.

Anderson's ninth film, Phantom Thread, set in the London fashion industry in 1954, was released in late 2017. The film stars Daniel Day-Lewis in his first acting role since Lincoln in 2012, and his self-proclaimed final performance in a film, following four decades in the profession. The cast also includes Lesley Manville, Vicky Krieps and Richard Graham. Focus Features distributed the film in the United States, with Universal handling international distribution. Principal photography began in January 2017. Robert Elswit was absent during production, and despite claims of Anderson acting as his own cinematographer on the film, there is no official credit. The film received six nominations at the 90th Academy Awards, winning one for Best Costume Design.