In 1999, Karukoski was one of only 3 new students admitted to the University of Art and Design Helsinki to major in directing; he had had no former experience in directing or holding a camera.
Karukoski's debut feature Beauty and the Bastard (Tyttö sinä olet tähti) showed at the Berlin International Film Festival and Tribeca Film Festival in 2006. The film, which stars Pamela Tola, concerns young people in Finland who are caught between conventional careers and more alternative forms of living. The film's score contains contemporary Finnish pop music, particularly hip-hop and rap music. Beauty and the Bastard won the Norwegian National Film Prize Amanda sponsored by Canal+ & Svensk Filmindustri AB for best Nordic Debut-Film. Beauty and the Bastard was also nominated in eight categories for the Finnish National Film Awards Jussi Award including nominations for Best film and Best director. It won the Audience Award and the prize for Best Music.
Karukoski's second feature film The Home of Dark Butterflies (Tummien perhosten koti) premiered in Finland January 2008. It is a drama about Juhani, a 13-year-old castaway sent to a home for boys on an island. The Home of Dark Butterflies was nominated in ten categories for the Finnish National Film Awards, and this time Karukoski won the prize for the Best Director. The Home of Dark Butterflies was also chosen as Finland's representative for both The Nordic Council Film Prize and the Academy Awards.

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