Carbon nanodots are a recently discovered sort of carbon nanoparticles, demonstrating excellent fluorescence and physical-chemical properties that make them appealing for diagnostics and chemotherapeutics, including biosensing, bioimaging, and nanocarriers for drug delivery ground-breaking therapeutic agents in photothermal and photodynamic therapy. This critical review strongly focuses on the varied sorts of processes involved in the synthesis of carbon nanodots alongside the benefits and shortcomings. Furthermore, the multiple applications of carbon nanodots are established and used to develop potential theranostic nanoarchitectures. This review paper analyses with a discussion focusing on the discovery, synthesis processes, and diverse biomedical applications.