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Carbon quantum dots (CQDs) have emerged as prominent contenders in the realm of luminescent nanomaterials over the past decade owing to their tunable optical properties, robust photostability, versatile surface functionalization and doping potential, low toxicity, and straightforward synthesis utilizing environmentally friendly precursors. In this review, we commence with a concise introduction, presenting both top‐down and bottom‐up strategies for the eco‐friendly synthesis of CQDs. Subsequently, we delve into a comprehensive examination of CQDs' structure and optical characteristics, encompassing their ultraviolet–visible absorption properties, surface confinement effects, and surface state emissions contributing to room‐temperature photoluminescence (PL). This review proceeds to elucidate recent advancements in modification strategies for CQDs, specifically focusing on surface oxidation, passivation, and the incorporation of heteroatoms. These strategies serve to afford control over the physicochemical properties, facilitating the enhancement of PL through the decoration of highly visible‐responsive CQDs. This enhancement is achieved by suppressing the nonradiative recombination of electron‐hole pairs, enabling red/blue shifts in CQDs for the generation of a full‐color emission spectrum, and regulating the band‐gap and surface states to broaden the photoabsorption range. Finally, we offer an overview of the most recent developments in the applications of fluorescent CQDs, emphasizing their utility in biomedicine, fluorescent sensors, lighting, and displays, as well as photocatalysis. [ABSTRACT FROM AUTHOR]