Nitric oxide (NO) is a ubiquitous, gaseous, free radical signaling molecule which plays a key role in physiological and pathological processes. Literature reports revealed that the conventional methods such as colorimetry, electron paramagnetic resonance (EPR), electrochemical etc. to detect NO are costly, time consuming and lack resolution, particularly in aqueous or biological system. Thus, in this context, herein we have developed covalently linked biomass derived carbon quantum dots (CQDs) and naphthalimide based nano sensor system for FRET based ratiometric detection of nitric oxide (NO) in pure aqueous media. The CQDs derived from orange peels were characterized using UV–visible absorption, fluorescence spectroscopy, PXRD, TEM, FT-IR and zeta potential studies. Further, the obtained CQDs were functionalized with amine functionality, and subsequently linked with naphthalimide derivative (5) using terephthaldehyde through covalent bond formation. The conjugation of naphthalimide (5) and functionalized CQDs was studied using DLS, zeta potential, FT-IR and time resolved fluorescence spectroscopy. The excitation of developed nano sensor system at λex 360 nm results in fluorescence emission at λem 530 nm which establishes the FRET pair between the CQDs and naphthalimide unit. However, in the presence of NO, the observed FRET pair abolishes due to the cleavage of NO susceptible imine bond. The developed sensor demonstrates high selectivity towards NO with limit of detection (LOD) and limit of quantification (LOQ) of 15 nM and 50 nM respectively. Further, the developed sensor system was also utilized for indirect detection of nitrite (NO2−) in food samples for food safety and monitoring.