AbstractCarbon dots (CDs) are a novel class of carbon material which have gained widespread usages owing to their exceptional optical properties, low toxicity, and high biocompatibility. The nitrogen‐doped carbon dots (N‐CDs) using a normal curing agent of 4,4′‐diaminodiphenylmethane as resource was expected to not only have good compatibility with epoxy resin (EP), but also bring luminescent property to EP composites. It was interesting that the N‐CDs‐EP composites with 12.5 wt% addition exhibited a limiting oxygen index value of 31.4% and reached UL‐94 V‐1 grade, indicating a good flame retardancy. Compared with pure EP, the incorporation of N‐CDs formed more residual char and had extra smoke suppression effect. Besides, the N‐CDs‐EP composites exhibited a low transmittance less than 10% for the light wavelength below 490 nm. The N‐CDs contributed to the light shielding capabilities of the N‐CDs‐EP composites, which could effectively shield purple, blue, and cyan light. Furthermore, the mechanical properties including bending strength and impact strength, the dielectric property, and hydrophobicity of N‐CDs‐EP composites were also improved. The simple but effective modification strategy might be expected to be applied in many polymer systems.