The relationship between the unique characteristics of nanodiamonds (NDs) and the fluorescence properties of nitrogen-vacancy (NV) centers has lead to a tool with quantum sensing capabilities and nanometric spatial resolution; this tool is able to operate in a wide range of temperatures and pressures and in harsh chemical conditions. For the development of devices based on NDs, a great effort has been invested in researching cheap and easily scalable synthesis techniques for NDs and NV-NDs. In this review, we discuss the common fluorescent NDs synthesis techniques as well as the laser-assisted production methods. Then, we report recent results regarding the applications of fluorescent NDs, focusing in particular on sensing of the environmental parameters as well as in catalysis. Finally, we underline that the highly non-equilibrium processes occurring in the interactions of laser-materials in controlled laboratory conditions for NDs synthesis present unique opportunities for investigation of the phenomena occurring under extreme thermodynamic conditions in planetary cores or under warm dense matter conditions.