Nature provides an almost limitless supply of sources that inspire scientists to develop new materials with novel applications and less of an environmental impact. Recently, much attention has been focused on preparing natural‐product‐derived carbon dots (NCDs), because natural products have several advantages. First, natural products are renewable and have good biocompatibility. Second, natural products contain heteroatoms, which facilitate the fabrication of heteroatom‐doped NCDs without the addition of an external heteroatom source. Finally, some natural products can be used to prepare NCDs in ways that are very green and simple relative to traditional methods for the preparation of carbon dots from man‐made carbon sources. NCDs have shown tremendous potential in many fields, including biosensing, bioimaging, optoelectronics, and photocatalysis. This Review addresses recent progress in the synthesis, properties, and applications of NCDs. The challenges and future direction of research on NCD‐based materials in this booming field are also discussed.