"Chandni Bar" (2001) put the spotlight on the gritty life of bar girls and the Mumbai underworld, while "Fashion" (2008) revealed the underbelly of the glamorous fashion world.
Bhandarkar is humbled by the love and support of the international festival.
"I'm glad that my films have made a special slot for people around the world. I am looking forward to be there for the festival with two of my most loved films - 'Chandni Bar' and 'Fashion', " Bhandarkar said in a statement.
The festival has dedicated a section called "Leading The New Wave" to the director, who is known for making hard-hitting and realistic cinema.
"I have seen almost every film of Madhur Bhandarkar and I always wondered why Germany doesn't get to see his work, so at IFF Berlin, we took this opportunity to screen two of his remarkable films, " said Alexandra Ccahuana Tito, chief executive officer of the festival.
Bhandarkar will also release the new trailer of his upcoming film "Heroine" at the fest.