In this study, environmentally friendly waterborne hyperbranched polyester/carbon dot (CD) nanocomposites were fabricated by in situ polymerization through a facile and greener route in absence of catalyst, solvent and neutralizing agent. Three nanocomposites were prepared at different loadings of CD (0.1, 0.5 and 1 wt %). CD was prepared from citric acid and glycerol in presence of cost free cow urine through a one step greener method. The structural attributes of the nanocomposites were evaluated by transmission electron microscopy, X-ray diffraction, Fourier transform infrared and UV-visible spectroscopic studies. The thermosets were obtained by curing the polyester nanocomposite with glycerol based hyperbranched epoxy and fatty acid based poly(amido amine) hardener. The nanocomposites exhibited excellent wavelength dependent down-and up-conversion fluorescence properties. The significant improvements in mechanical properties like tensile strength (7.8 -47 MPa), Young's modulus (243 -745 MPa), toughness (17.82 -51.1 MJm -3 ) and scratch hardness (4 -10 kg) were observed for the thermosetting nanocomposites. Thermogravimetrc analysis supports high thermostability (234 -265 °C) while differential scanning calorimetry authenticated glass transition temperature in the range of 49-56 °C. The rheological study demonstrated shear thining behaviour. The nanocomposite films exhibited good transparency in the visible range. Further, thermosetting nanocomposites were found to be highly biodegradable by Bacillus subtilis and Pseudomonas aeruginosa bacterial strains. The nanocomposite also possesses efficient self-cleaning ability as observed by photodegradation of formaldehyde (within 7 h) and methylene blue (80 min) under exposure of normal sunlight. Thus, this nanocomposite could be used as a promising eco-friendly material for advanced applications.