Carbon dots (CDs) are multifunctional fluorescent nanomaterials with significant potential in biomedical, energy, and environmental fields, attributed to their biocompatibility, adjustable photoluminescence, and environmentally sustainable manufacturing methods. However, their increasing production encounters several obstacles such as variable synthesis repeatability, elevated purifying costs, energy-demanding processes, and unresolved regulatory and toxicity issues. Progress in continuous flow synthesis, AI-assisted parameter optimization, and waste-derived eco-friendly precursors offers avenues for scalable, economical production. The commercialization of CDs is driven by their applications in bioimaging, drug delivery, catalysis, and pollution sensing, with hybrid systems, such as CD-metal/MOF composites, enhancing their capabilities. Sustainable methods must reconcile high yields with ecological efficiency via life cycle assessments. Interdisciplinary collaboration is essential for standardizing processes, validating safety, and aligning advances with international regulatory frameworks. Resolving synthesis variability, ensuring renewable precursor compatibility, and assessing long-term environmental implications will dictate the transfer of CDs from laboratory innovations to widely adopted technologies, promoting equitable progress in nanotechnology.