In today’s time, if you were to name the best movie ever across the nation and the world, you would vote for Baahubali and Avatar respectively. Both the movies have a common link and that is Mahabharata. Here is a brief insight on how the films are linked to Mahabharata.
In the year 2007, James Cameron was giving an interview for Time Magazine when he was asked about the meaning of Avatar and he mentioned how it is an incarnation of one of the Hindu gods taking a flesh form. He also added he likes the color blue because there's a connection to the Hindu deities which he liked it conceptually.
Around the same time, Maxim Osipov of The Hindustan Times, hailed Avatar for its consistency with teachings of Hinduism in Bhagavad Gita. As such, Bhagavad Gita is part of Mahabharata so you can see how Avatar got its inspiration. Coming to Baahubali, the storyline has lot of similarity with Mahabharata such as fight between brothers, deceit, betrayal and other emotions.