The carbon‐based nanostructures have led to the development of theranostic nanoplatforms for simultaneous diagnosis and therapy due to their effective cell membrane‐penetration ability, low degree of cytotoxicity, excellent pore volume, substantial chemical stability, and reactive surface. In the last few years, extensive efforts were made to design multifunctional nanoplatform strategies based on carbon nanostructures, involving multimodal imaging, controlled drug release capabilities, sensing in vitro, efficient drug loading capacity, and therapy. Carbon and graphene quantum dots (CQDs and GQDs) were the recent entrants, contingently being assessed for drug delivery and bioimaging. With the advancements, these quantum dots have ignited remarkable research interest and are now widely evaluated for diagnosis, bioimaging, sensing, and drug delivery applications. The last decade has witnessed their remarkable electrical, optical, and biocompatible properties since their inception. It is presumed that both of them have high potential as drug carriers and would serve as the next generation of approaches to address numerous unresolved therapeutic challenges. This review examined the recent advances of CQD and GQD based drug delivery applications, challenges, and future perspectives to pave the way for further studies in the future.