This study investigates the application of carbon quantum dots as tracers in inter-well connectivity monitoring. A new laboratory-made water-soluble carbon quantum dot fluorescent tracer (CQD-W) was studied using 3D fluorescence characterization, structural characterization, reservoir suitability evaluation, and core flow experiments. The experimental results showed that CQD-W has a size of about 2 nm, a minimum detection limit of 10−2 mg·L−1. It has good stability when the salinity is 200,000 mg·L−1, the concentration of Ca2+ is 1000 mg·L−1, the pH value is 1–9, and the temperature is 80 °C. Because CQD-W contains many functional groups, such as carboxyl and hydroxyl, it shows good water solubility and has a negative surface charge. In the process of formation flow, CQD-W has a small adsorption amount, high tracer resolution, and excellent injectivity and mobility, meaning it is less likely to cause reservoir damage. Through the study of this method, the application field of carbon quantum dots is broadened, and it is proved that the CQD-W fluorescent tracer has a high potential for application in the oil industry, laying the foundation for the popularization of this technology.