Green synthesis of scalable, high-quality, fluorescent carbon quantum dots (CQDs) from natural biomass remains attractive due to their outstanding environmental application. CQDs are an emerging class of zero-dimensional carbon nanomaterials (<10 nm) that have recently attracted much attention due to their strong optical properties, biocompatibility, nontoxicity, uniform particle size, high photostability, low-cost synthesis, and highly tunable photoluminescence. The unique properties of CQDs possess a broad range of prospective applications in a number of fields such as metal ions detection, photocatalysis, sensing, medical diagnosis, bioimaging, and drug delivery. CQD nanostructures are synthesized using various techniques such as hydrothermal method, laser ablation, microwave irradiation, electrochemical oxidation, reflux method, and ultrasonication. However, this type of fabrication approach requires several chemical reactions including oxidation, carbonization, and pyrolysis. Green synthesis of CQDs has several advantages such as the use of low-cost and non-toxic raw materials, renewable resources, simple operations, and being environment-friendly. This review article will discuss the physicochemical properties of CQDs techniques used in the production of CQDs, and the stability of CQDs along with their applications in wastewater treatment and biomedical fields.