Carbon quantum dots (CQDs) are an emerging class of novel carbon nanomaterials (< 10 nm). These zero-dimensional CQDs have recently invoked significant interest due to their high fluorescence ability, strong electronic conductivity, biocompatibility, excellent chemical stability, non-toxicity, and environmental safety. Bio-fabrication of CQDs from organic resources remains attractive owing to their excellent functional properties. An emerging class of CQDs is fabricated by various conventional methods. However, these methods need many chemical agents and instrument facilities. Bio-fabrication of CQDs has a lot of benefits because of its simple fabrication and eco-friendly. Therefore, the green synthesized CQDs are considered optimistic candidates for developing novel functional materials for food packaging applications. Thus, it is important to investigate the latest update on green-based CQDs for food packaging applications. This current review paper discusses the physicochemical properties of CQDs, the bio-fabrication of CQDs, and the fluorescent properties of CQDs along with their food packaging applications.