Carbon dots have attracted much attention due to their high fluorescence intensity, easy modification, good stability, and biocompatibility. However, the realization of low‐cost mass production of high‐quality carbon dots still faces great challenges. Biomass is of non‐toxic and environmentally friendly organism, but a lot of biomass is treated as waste for burning and landfill at present, causing irreparable pollution to the environment. In fact, many biomass resources are ideal candidates for preparing carbon dots. This review focuses on carbon dots including carbon quantum dots (CQDs) and graphene quantum dots (GQDs) which using biomass as carbon source on the aspects of plants and their derivatives, animals and their derivatives and municipal waste. The characterization of the structure and composition of biomass carbon dots, the regulation of fluorescence color and the methods of improving quantum yield (QY) including heteroatom doping and surface modification are introduced in detail. Moreover, biomass carbon dots for detecting metal ions and non‐metal molecules and their quenching mechanism are emphatically introduced in addition to summarizing the luminescence mechanism, and some promising prospects and challenges in this uplifting field are discussed.