Mathilde Bundschuh was born on July 30, 1994, in Plauen. Growing up in a family of actors—her father, Jörg Bundschuh, and her older brother, Joseph Bundschuh—she was exposed to the world of film and television from an early age. She made her acting debut at the age of eleven in a short film, and the same year appeared in an episode of the TV series "Typisch Sophie" (2005). Over the following years, she appeared in several television productions, including the Christmas film "Beutolomäus und der geheime Weihnachtswunsch" (2006) and the comedy "Freie Fahrt ins Glück" (2007) with Saskia Vester. From 2007 to 2009, she played a recurring lead role in the Erfurt-based episodes of the children's crime series "Krimi.de."

Bundschuh’s first leading role in a television drama came in Franziska Buch’s psychological film "Rosannas Tochter" ("Rosanna's Daughter" 2009), where she portrayed a teenager who, after the death of her mother, has to live with her father and his new partner. A similar theme was explored in "Tage die bleiben" ("A Family of Three", 2011), where Bundschuh played her first leading role in a feature film. In this story, she portrays a teenager who, following her mother’s fatal accident, becomes embroiled in heavy conflict with her unfaithful father. The award-winning film premiered in German cinemas in early 2012. Bundschuh also played leading roles as a traumatized kidnapping victim in the Saarland "Tatort" episode "Verschleppt" (2012) and in the mother-daughter drama "Geliebtes Kind" (2012).

In 2012, she began her acting studies at the Hochschule für Musik und Theater in Rostock. During this time, she continued to take on TV roles: she appeared in a smaller supporting role as the daughter of the main female character in "Das Adlon. Eine Familiensaga" (2013) and as one of the victims of a powerful child trafficking ring in "Operation Zucker – Jagdgesellschaft" (2016). For her brief but memorable role as a punk in the social drama "Das Ende der Geduld" (2015), Bundschuh won the German Actor's Award in the "Strong Performance" category. Her portrayal of a Romanian beggar in the "Tatort" episode "Klingelingeling," whose baby tragically dies, earned her a nomination for the Studio Hamburg Newcomer Award.

After graduating in 2016, Bundschuh joined the Residenztheater Munich for the 2016/17 season, where she performed in several stage productions until 2019. In 2018, she received the Förderpreis (Promotional Award) from the Residenztheater Friends, and in both 2018 and 2019, she was nominated as Actress of the Year in the critics' poll of the theater journal Theater heute. During this period, she stepped back from film and television roles.  

In 2019, Bundschuh left the Residenztheater to work as a freelance actress. She played episodic roles in series such as "In aller Freundschaft," "SOKO Köln" ("Cologne P.D."), and "SOKO Potsdam," and portrayed the date of a misogynistic murderer (played by her brother, Joseph Bundschuh) in the "Tatort" episode "Borowski und die Angst der weißen Männer" (2021). In 2022, she took on a main role in the series "Die Kanzlei," playing the new assistant at the titular law firm.  

On the big screen, Mathilde Bundschuh appeared in 2024 in a leading role in the dystopian drama "Milchzähne" ("Milk Teeth"), playing a young woman who, in a near-future, inhospitable world, assumes responsibility for a young girl.