This work reports nitrogen-doped carbon dots (NCDs) as a selective sensing probe to detect Fe3+ in water samples. NCD probes were synthesized via solvothermal method using nitrogen-rich melamine and triethanolamine as precursors. Properties of the resulting NCDs were studied using different characterization techniques, through which N-doping was confirmed. The quantum yield of obtained NCDs was measured to be 21%. When excited at 370 nm, the excellent blue emission property makes this probe adoptable for selectively sensing Fe3+ in practical water samples. The limit of detection (LOD) was identified as 216 nM with a good linear range between the concentrations of 0.2-2 μM. The obtained LOD is far less than the World Health Organization (WHO) permissible limits of Fe3+ in water. Interference studies reveal that the presence of other competing ions did not alter the sensing of Fe3+, even at the presence of 10 equivalents which indicates the high selectivity of NCDs towards Fe3+. The reversibility studies showed that adding a cheap and readily available EDTA ligand to the NCD results in fluorescence regeneration, leading to exceptional reusability for the detection of Fe3+. So, the synthesized NCDs can be used as a suitable probe for the selective determination of Fe3+ in real water samples.