Beginning in the mid-1970s, Katon worked steadily in Hollywood, including a stint on Grady, the short-lived spin-off of the hit situation comedy Sanford and Son that starred Whitman Mayo in the title role, and guest appearances on Jason of Star Command, What's Happening!!, Good Times and That's My Mama, which starred Clifton Davis. She then had leading roles in two Cirio Santiago action films, both released in 1976, Ebony, Ivory & Jade, in which she received top billing, and The Muthers, in which she acted alongside former Playboy centerfold Jean Bell. However, the shapely Actress was often typecast in sex kitten roles in R-Rated comedies such as The Swinging Cheerleaders (1974), Chesty Anderson, U.S. Navy (1976), American Raspberry (1976), Lunch Wagon (1981), Zapped! (1982) and Bachelor Party (1984). This was solidified by her appearance as the September 1978 Playboy centerfold. Notable exceptions to this rule were a recurring role opposite Denzel Washington on the medical drama St. Elsewhere and her appearance in two award-winning UCLA student films, Julie Dash's "Illusions," released in 1982, in which she portrayed a singer doubling for a white Actress in 1940s Hollywood (whether she did her own singing in the role was not known as of mid December 2012), and S. Torriano Berry's "Rich," in which she portrays the title character's supportive girlfriend. Her other film credits included the TV movie The Night They Took Miss Beautiful (1977), the cult horror film Motel Hell (1980), Body and Soul (1981), City Girl (1984) and Harem (1985), opposite Nastassja Kinski and Ben Kingsley.

Katon was selected as Miss Golden Globes for the 1981 awards show. The honor and the task of presenting the statuettes during the ceremony goes to an up-and-coming Actress. Katon was the first African American to be selected, since the custom started in 1962.

In 1984, Katon married Richard M. Walden, who is the President and chief executive officer of Operation USA, an international organization that supplies relief to Third World areas in need such as Rwanda, Cambodia and, more recently, tsunami-ravaged Sri Lanka, Thailand and Indonesia; and to Hurricane Katrina-ravaged areas of Louisiana and Mississippi. Rosanne is an active participant with Operation USA and also serves on its Advisory Board. The relief group is based in California.

At one point, Katon segued into the world of stand-up comedy, and during that period in her career, she appeared in the June 1991 Playboy pictorial "Funny Girls," which covered female comedians.

The Waldens have two children, including a son who is autistic and an expert Cellist. The family is featured in the 2007 documentary Autism: The Musical which won the 2007 Emmy for Best TV Documentary Special (HBO).