Lead (Pb) is a highly toxic heavy metal that causes significant health hazards and environmental damage. Thus, the detection and removal of Pb ions in freshwater sources are imperative for safeguarding public health and the environment. Moreover, the transformation of single resources into multiple high-value products is vital for achieving sustainable development goals (SDGs). In this regard, the present work focused on the preparation of two efficient materials, i.e., biochar (R-BC) and carbon dots (R-CDs) from a single resource (rice straw), via a novel approach by using extraction and hydrothermal process. The various microscopic and spectroscopy techniques confirmed the formation of porous structure and spherical morphology of R-BC and R-CDs, respectively. FTIR analysis confirmed the presence of hydroxyl (-OH), carboxyl (-COO) and amine (N-H) groups on the R-CDs' surface. The obtained blue luminescent R-CDs were employed as chemosensors for the detection of Pb ions. The sensor exhibited a strong linear correlation over a concentration range of 1 µM to 100 µM, with a limit of detection (LOD) of 0.11 µM. Furthermore, the BET analysis of R-BC indicated a surface area of 1.71 m/g and a monolayer volume of 0.0081 cm/g, supporting its adsorption potential for Pb. The R-BC showed excellent removal efficiency of 77.61%. The adsorption process followed the Langmuir isotherm model and second-order kinetics. Therefore, the dual use of rice straw-derived provides a cost-effective, environmentally friendly solution for Pb detection and remediation to accomplish the SDGs.