Quantum dots (QDs) are important frontier luminescent materials for future technology in flexible ultrahigh-definition display, optical information internet, and bioimaging due to their outstanding luminescence efficiency and high color purity. I− III−VI QDs and derivatives demonstrate characteristics of composition-dependent band gap, full visible light coverage, high efficiency, excellent stability, and nontoxicity, and hence are expected to be ideal candidates for environmentally friendly materials replacing traditional Cd and Pb-based QDs. In particular, their compositional flexibility is highly conducive to precise control energy band structure and microstructure. Furthermore, the quantum dot light-emitting diodes (QLEDs) exhibits superior prospects in monochrome display and white illumination. This review summarizes the recent progress of I−III−VI QDs and their application in LEDs. First, the luminescence mechanism is illustrated based on their electronic-band structural characteristics. Second, focusing on the latest progress of I−III−VI QDs, the preparation mechanism, and the regulation of photophysical properties, the corresponding application progress particularly in light-emitting diodes is summarized as well. Finally, we provide perspectives on the overall current status and challenges propose performance improvement strategies in promoting the evolution of QDs and QLEDs, indicating the future directions in this field.