Organic–inorganic hybrid perovskite solar cells (PSCs) attract many researchers in the field of photovoltaic because of their high‐power conversion efficiency and low‐cost manufacturing. However, improper interfacial charge transfer, perovskite degradation, and poor stability are major concerns for their commercialization and scale‐up. Significant efforts have been made in recent years mainly by employing different strategies such as optimizing fabrication, developing novel materials, use of additives, and an interfacial layer in PSCs. Nowadays, carbon materials are widely recognized as promising candidates for alternative usage in PSCs because of their cost effectiveness, high conductivity, appropriate work function (5.0 eV), and low‐temperature sintering process. In addition, the highly hydrophobic nature of the carbon‐based materials prevents moisture penetration into the perovskite layer, resulting in enhanced stability. This review shows how effectively carbon‐based materials can improve the performance of PSCs. First, the different carbon materials such as graphene and its derivatives, fullerenes and its derivatives, carbon quantum dots, and carbon nanotubes are described. Subsequently, the role of these carbon‐based materials employed in electron‐transport layers, hole‐transport layers, and perovskite layers in PSCs is discussed. Thus, this review highlights the recent advancements made in carbon‐based PSCs and their role in improving the performance of PSCs.