A family of carbon-based nanomaterials known as carbon dots (or CDs) that are spherical in shape with a diameter of less than 20 nm have attracted a lot of attention recently because of their special qualities and wide range of uses. A comprehensive review of the synthesis processes, and new uses and applications for carbon dots in the textile field are discussed in this work. A variety of techniques, including hydrothermal and microwave, are used in the synthesis of CDs, which produce nanoscale carbon structures with remarkable quantum entanglement effects and adjustable surface characteristics. Carbon-rich biological precursors or synthetic precursors are capable of being utilized to create these kinds of carbon-based nanoparticles. Furthermore, CDs' sustainable origins—they are produced using ecologically favorable synthesis techniques and carbon-rich precursors—align with the textile industry's expanding focus on ecologically friendly practices. CDs have demonstrated their potential to be used as UV, flame-retardant, as well as antibacterial materials that may be added to textiles to provide them the protective properties required for the safety of wearer. And they perform excellently in the aforementioned textile applications because of their biocompatibility, non-toxic behavior, photoluminescence, low cost, and the presence of functional groups like carboxyl and hydroxyl.