The present day world involved in the fabrication of miniaturized smart devices is in continuous quest of materials with better optoelectronic and magneto-electronic efficiency. Effective incorporation of dopants into semiconductor lattices have been accepted as a primary means of controlling electrical, optical, magnetic and other physico-chemical properties of semiconductors. Manipulations in magnetic spin within a semiconducting material have lead to an effective research for potential ferromagnets with semiconducting properties, leading to an important field, dilute magnetic semiconductors (DMS). On the other hand, quantum dots (QDs) have been registered to be quantum confined nanocrystals with unique optoelectronic properties, having a wide range of potential applications. QDs experienced rapid development leading to the concept of dilute magnetic semiconducting quantum dots (DMSQDs), where transition metals with a few to several atomic percentages, having unpaired d-electrons, are doped in order to manipulate their opto-magnetic properties. These materials are fabricated by alloying transition metals with Group II-VI, III-V and IV-IV elements resulting in multi-component systems. They have tremendous applications in the spintronics industry, where electronic properties are controlled by spin degree of freedom. The present report reveals the significance, electronic origination of the fact, synthesis and their applications toward the fabrication of spintronics devices.