Carbohydrate-derived ionic liquids have been explored as bio-alternatives to conventional ionic liquids for over a decade. Since their discovery, significant progress has been made regarding synthetic methods, understanding their environmental effect, and developing perspectives on their potential applications. This review discusses the relationships between the structural properties of carbohydrate ionic liquids and their thermal, toxicological, and biodegradability characteristics in terms of guiding future designs of sugar-rich systems for targeted applications. The synthetic strategies related to carbohydrate-based ionic liquids, the most recent relevant advances, and several perspectives for possible applications spanning catalysis, biomedicine, ecology, biomass, and energy conversion are presented herein.