Carbon dots (CDs), a new member of the nanocarbon family, are revolutionizing a wide range of fields. This new member has been the subject of extensive international research. Its synthesis methods, characteristics, and applications are active research areas. Carbon dots are nanoparticles composed of carbon with a diameter of less than 10 nm. The distinctive structure and size of CDs suggest that their physical, chemical, electrical, and optical properties are modifiable. In addition, they possess properties such as low toxicity, high water solubility, chemical stability, photoluminescence, photostability, electroluminescence, high quantum yield, high surface area, heteroatom doping capability, abundance of surface functional groups, good conductivity, and environmental friendliness. This review attempts to provide an introductory story of carbon dots. From the early beginning of CDs through the myriad of synthesis techniques used to date, the review advances to the properties and applications that have not yet been fully explored. The principal applications covered include fluorescence detection, electrochemical sensing, pH monitoring, fluorescent ink, and metal nanoparticle synthesis. Recent developments, gaps, and obstacles for each of these applications have been discussed.