She is perhaps best known for her role in the 1987 hit horror film A Nightmare on Elm Street 3: Dream Warriors and its sequel, A Nightmare on Elm Street 4: The Dream Master (1988) as Elaine Parker. Bundy appeared in Daniel Farrands documentary film Never Sleep Again: The Elm Street Legacy.

She had two long-running roles on the soap opera serials Days of our Lives as Rebecca North (1975–1977) and General Hospital as Diana Maynard Taylor R.N. (1977–1981). She has made guest appearances on a variety of television shows including Gunsmoke, Bonanza, Rawhide, The Virginian, Mannix, Voyage to the Bottom of the Sea and Star Trek: The Next Generation (in the first-season episode "The Naked Now").

She has been married to Peter Helm since the mid 1960s. They have a daughter, Tiffany Helm, who is also an actress. She is now an acting coach and manager.