 However, her biggest success that year was her final release, Karan Johar's directorial debut, the romance Kuch Kuch Hota Hai. Co-starring Shah Rukh Khan, her cousin Rani Mukerji and Salman Khan, the film emerged as an all-time blockbuster in both India and overseas with a worldwide gross of ₹ 1 billion (US $ 15 million). Kajol played Anjali Sharma, an unattractive fun-loving tomboy, who later transforms into a feminine and beautiful girl, and is secretly in love with her best friend, played by Shah Rukh Khan. A review carried by The Times of India wrote, "Kajol is almost mesmeric as Anjali, the firebrand youngster who doesn't know whether she should settle for best girl or basketball buddy. [...] Kajol with her baggy apparel, her bouncy bob cut and her boyish banter is absolutely riveting." She eventually won her second Best Actress award at the 44th Filmfare Awards ceremony and first Zee Cine Award for Best Actress for her performance in the film. Filmfare included Kajol's work in both Dushman and Kuch Kuch Hota Hai in their listing of Indian cinema's "80 Most Iconic performances".
