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Carbon dots (CDs) are nanoparticles with tunable physicochemical and optical properties. Their resistance to photobleaching and relatively low toxicity render them attractive alternatives to fluorescent dyes and heavy metal-based quantum dots in the fields of bioimaging, sensing, catalysis, solar cells, and light-emitting diodes, among others. Moreover, they have garnered considerable attention as they lend themselves to green synthesis methods. Increasingly, one-pot syntheses comprising exclusively of renewable raw materials or renewable refined compounds are gaining favor over traditional approaches that rely on harsh chemicals and energy intensive conditions. The field of green CD synthesis is developing rapidly; however, challenges persist in ensuring the consistency of their properties (e.g., fluorescence quantum yield) relative to conventional preparation methods. This has mostly limited their use to sensing and bioimaging, leaving opportunities for development in optoelectronic applications. Herein, we discuss the most common green CD synthesis and purification methods reported in the literature and the renewable precursors used. The physical, chemical, and optical properties of the resulting green-synthesized CDs are critically reviewed, followed by a detailed description of their applications in sensing, bioimaging, biomedicine, inks, and catalysis. We conclude with an outlook on the future of green CD synthesis. Future research efforts should address the broad knowledge gap between CDs synthesized from renewable versus non-renewable precursors, focusing on discrepancies in their physical, chemical, and optical properties. The development of cost effective, safe, and sustainable green CDs with tunable properties will broaden their implementation in largely untapped applications, which include drug delivery, photovoltaics, catalysis, and more.