Born in the family of war refugee, Lithuanian public figure Jonas Masiulis. In order to get to know her mother tongue better, she attended Žibuntas Mikšys' Lithuanian language classes at the Paris Institute of Oriental Languages and Civilisations. She studied acting at the Charles Dullin School of Drama Theatre and History at the Sorbonne University. Later he continued his studies at the State Drama School. In various theatre companies, she usually played young, well-mannered, virtuous girls. She then presented humorous one-man shows in the so-called café théâtre (French café theatre). The producer Philippe Bouvard accepted her for the television humour programme Le Petit Théâtre de Bouvard, a project that lasted for seven years.
In 1986, she created a play about the well-known dissident and fighter for religious freedom in Soviet Lithuania, Nijolė Sadūnaitė, together with another Lithuanian-born French actor, Jean-Krisstupas Mončis (the son of the sculptor Antanas Mončis). Directed by Martine Merri, the play was very well received by the French audience. The play was filmed and later shown on Lithuanian television. The actress also starred in La sévillane (1992), directed by Jean-Philippe Toussaint.
In 1994, Karolina moved to Lithuania with her Lithuanian-American husband, Arūnas Paliulis, and their daughter Lina. The family regained their grandfather Juozas Masiulis' former nationalised bookshop in Panevėžys. The geography of the book trade was expanded with the establishment of bookstores in Vilnius and Kaunas under the name of J. Masiulis.
The profession of an actress has not been forgotten - K. Masiulytė-Paliuliulienė starred in the film "Sekmadienis toks, jak jak yra" (Sunday is what it is like) by director Ignas Jonynas, and together with Petras Venclovas and Ligita Kondrotaite, she recited poetry of French authors at different events. She has directed two French plays "Madame Ka" and "Ça c'est Paris".
The actress is the chair of the jury of the Lithuanian Francophone Literary Prize (Le Prix du livre francophone), and was elected president of the Lithuanian-French Association.