Sustainable, inexpensive, and environmentally friendly biomass waste can be exploited for large‐scale production of carbon nanomaterials. Here, alkali lignin was employed as a precursor to synthesize carbon quantum dots (CQDs) with bright green fluorescence through a simple one‐pot route. The prepared CQDs had a size of 1.5–3.5 nm, were water‐dispersible, and showed wonderful biocompatibility, in addition to their excellent photoluminescence and electrocatalysis properties. These high‐quality CQDs could be used in a wide range of applications such as metal‐ion detection, cell imaging, and electrocatalysis. The wide range of biomass lignin feedstocks provide a green, low‐cost, and viable strategy for producing high‐quality fluorescent CQDs and enable the conversion of biomass waste into high‐value products that promote sustainable development of the economy and human society.