Fluorescent silicon carbide quantum dots have recently attracted attention due to their long-term chemical and optical stability, non-toxicity, biocompatibility, and ultra-low cost. More highly developed III-V and II-V quantum dots lack this combination of positive attributes. We review recent progress in the synthesis protocols and applications of silicon carbide quantum dots together with their resulting optical properties that aim to overcome the well-known indirect bandgap exhibited by all known silicon carbide polytypes. These advancements are accomplished by new approaches to preparing ultrasmall quantum dots that achieve quantum confinement. In addition, surface modifications may be realized by a rapidly growing range of functional groups, conjugated molecules, and shells. Recent advancements in the modeling of fluorescent nanoscale quantum dots using density functional theory are enabling unprecedented insights into fluorescence mechanistics. The application of engineered silicon carbide quantum dots to a range of problems is reviewed. Key target sectors include energy, electronics, optoelectronics, biomedical cell imaging and biosensors.