In recent years, the progress toward lighting miniaturization is focused on luminescent nanomaterials. Among them, fluorescent carbon dots (CDs) are receiving increasing attention thanks to their astonishing optical properties complemented by their intrinsic biocompatibility and low toxicity. The CDs can be easily dispersed in water, organic solvents or incorporated in polymeric matrices, preserving their emission properties. However, the relationship between their structural and optical properties is still not fully elucidated, motivating a consistent research effort for the comprehension of their features. Nevertheless, CDs demonstrate to be efficient gain materials for lasing, thanks to their high quantum yield (QY), emission tunability in the visible and near infrared (NIR) range, short lifetimes, and high absorption cross section, even if the synthetic reproducibility, the low reaction yield and the spectral width of the emission may limit their effective exploitation. This review summarizes the latest advancements in the investigation of the characteristic properties of CDs that make laser action possible, illustrating optical geometries for lasing and random lasing, both in solution and solid state, and the few currently demonstrated breakthroughs. While the journey toward their effective application is still long, the potential of CD‐based laser sources is promising in various technological fields and futuristic perspectives will be discussed.