Biomass resources are often disposed of inefficiently and it causes environmental degradation. These wastes can be turned into bio-products using effective conversion techniques. The synthesis of high-value bio-products from biomass adheres to the principles of a sustainable circular economy in a variety of industries, including agriculture. Recently, fluorescent carbon dots (C-dots) derived from biowastes have emerged as a breakthrough in the field, showcasing outstanding fluorescence properties and biocompatibility. The C-dots exhibit unique quantum confinement properties due to their small size, contributing to their exceptional fluorescence. The significance of their fluorescent properties lies in their versatile applications, particularly in bio-imaging and energy devices. Their rapid and straight-forward production using green/chemical precursors has further accelerated their adoption in diverse applications. The use of green precursors for C-dot not only addresses the biomass disposal issue through a scientific approach, but also establishes a path for a circular economy. This approach not only minimizes biowaste, which also harnesses the potential of fluorescent C-dots to contribute to sustainable practices in agriculture. This review explores recent developments and challenges in synthesizing high-quality C-dots from agro-residues, shedding light on their crucial role in advancing technologies for a cleaner and more sustainable future.