This article summarizes the preparation and applications of carbon derived from jute sticks and fibers that are low‐cost, widely available, renewable, and environmentally friendly. Both the fibers and sticks are considered ideal candidates of carbon preparation because they are composed of cellulose, hemicelluloses, and lignin, and contain negligible ash content. Various carbon preparation methods including simple pyrolysis, pyrolysis with chemical and physical activations are discussed. The impacts of several parameters including types of activating agents, impregnation ratio, and temperature on their morphology, surface area, pore size, crystallinity, and surface functional groups are also emphasized. Various treatments to endow functionalization for increasing the practical applicability, such as chemical, physical, and physico‐chemical methods, are discussed. In addition, applications of jute‐derived carbon in various practical areas, including energy storage, water treatment, and sensors, are also highlighted in this report. Due to the porous fine structure and a large specific surface area, the jute‐derived carbon could be considered as a powerful candidate material for various industrial applications. Finally, possible future prospects of jute‐derived carbon for various applications are pointed out.