A high quantum yield of up to 20% N-CDs from plastic bag waste has been synthesized via the pyrolysis-hydrothermal method. Using plastic bag waste as a carbon source offers several advantages, including their abundant availability, low cost, and potential to reduce plastic waste in the environment. The effect of hydrothermal time and H2O2 concentration as an oxidant was evaluated. The N-CDs acquired exhibit a consistent blue fluorescence, possess an average dimension of 5.94 nm, and consist of graphitic structures that may contain flaws induced by surface functional groups such as amine, imine, alcohol, carboxyl, and carbonyl. Excellent stability of the resulting N-CD toward storage time, NaCl, and phosphate buffered salt (PBS) solution pave the way to possible applications for metal ions sensing in wastewater and human cells.