This study presents a comprehensive analysis of the effects resulting from the substitution of biowaste-derived carbon-dot (CD) from human hair on structural and superconducting properties of MgB2. Syntheses of polycrystalline samples were accomplished through a standard solid-state reaction route. X-ray powder diffraction results confirm the formation of MgB2 as a primary phase in all samples and show the successful substitution of carbon for boron in MgB2. The critical current density, determined at 20 K and 4.5 T, for carbon-substituted MgB2 synthesized at 850 °C was enhanced by more than four times compared with unsubstituted MgB2. The observed improvement is due to the formation of efficient pinning centers resulting from the incorporation of carbon substituting for boron in MgB2. Furthermore, x-ray photoelectron spectroscopy (XPS) confirmed the presence of carbon bonding to boron in MgB2 synthesized with biowaste-derived CDs, indicating successful incorporation into the structure. Ultraviolet photoelectron spectroscopy (UPS) results show that the carbon-substituted MgB2 can lead to changes in the electronic band structure and values of work function. These changes significantly impact the properties of MgB2 materials, including superconducting transition temperature, upper critical field, and critical current density. The XPS and UPS experimental results are in good agreement with density functional theory calculations for MgB2 with and without carbon substitution.