In recent years, the urgent need to address environmental deterioration has sparked a surge in the development of innovative materials tailored for pollutant monitoring. With growing concerns surrounding pollution and its profound impact on human health and ecosystems, there is a pressing demand for effective solutions. In response, researchers have turned to the synthesis and application of novel materials as key avenues for intervention. Among the array of emerging materials, a particular focus has gravitated towards carbon dots encapsulated metal organic frameworks (CDs@MOF), which hold immense promise for sensor applications. These materials have captured attention due to their exceptional properties, including high surface area, customizable porosity, and heightened optical sensing capabilities. Their unique attributes position them as frontrunners in the quest for innovative sensor technologies aimed at addressing environmental challenges. In this regard, the current review delves into the burgeoning field of luminescent sensors, particularly focusing on the synergy between CDs and MOF. The exploration spans heavy metal cations, anionic pollutants, pesticides, hazardous gases, and organic contaminants showcasing the versatility of CDs@MOF sensors in monitoring various environmental pollutants by exhibiting sensitivity, selectivity, and applicability in real-world scenarios. Beyond pollutant detection, the review highlights the role of CDs@MOF sensors in measuring various environmental parameters like moisture, pH, and temperature, offering a holistic approach to the management of the environment. This review not only emphasizes existing knowledge but also brings to light novel dimensions, encouraging researchers for exploration of CDs@MOF as optical sensors in pollutant sensing. The culmination of this study highlights CDs@MOF sensors as transformative tools in understanding, managing, and safeguarding of our environment.