Carbon dots (CD), a class of 0D nanomaterials, have gained much research attention over the years due to their uniqueness in properties such as tunable photoluminescence, biocompatibility, low toxicity, water‐solubility, and chemical stability. Converting inexpensive biomass to valuable materials highlights the synthesis and applications of biomass‐derived CDs. This review summarizes the research and development related to the synthesis, properties, and applications of biomass‐derived CDs, furnishing a comprehensive list of biomass‐derived CDs with their properties and potential applications. This review's discussions and references span the properties that equip CDs for their diverse biomedical applications, such as bioimaging, sensing, drug delivery, phototherapy, and nanomedicine.