Generally, carbon nanoparticles with a size of 10 nm (or less) are called carbon quantum dots (CQDs, C-dots or CD), which have created huge excitement due to their advantages in chemical inertness, high water solubility, excellent biocompatibility, resistance to photobleaching and various optical superiority. In this article, we describe the recent advancements in the area of CQDs; concentrating on their synthesis techniques, size control, surface modification approaches, optical properties, luminescent mechanism, and their applications in bioimaging, biosensing, drug delivery and catalysis.