Carbon Quantum Dots (CQDs) are nanoscale carbon‐based particles with unique quantum properties. Because of their customizable size, optical properties, and surface functions, CQDs are frequently used in a wide range of applications. The present thorough analysis delves into the crucial function of CQDs in the photocatalytic breakdown of Methylene Blue (MB), providing valuable perspectives on their production, attributes, and catalytic processes. The effects of pH, wavelength, intensity, and other variables on the effectiveness of MB degradation are covered in detail. An analytical review of the kinetic models used to estimate the deterioration process is given. For improved stability and recyclability, the synergistic effects of CQD‐based composites and developments in catalyst immobilization techniques are examined. Prospects for the future center on reactor designs, integration into large‐scale water treatment systems, and optimization of CQD features. The research highlights the revolutionary potential of CQDs in transforming wastewater treatment and advancing environmentally sound solutions.