Nitrogen doping can effectly adjust the compositions and structures of carbon dots and hence enhance their fluorescence. In this work, we report a fast and low-cost route for synthesis of nitrogen-doped carbon dots (N-CDs) by microwave pyrolysis of citric acid and ammonium within 7 min. The as-prepared N-CDs contain plentiful oxygen and nitrogen functional groups, and dispaly intense fluorescence with high quantum yield of ca. 44.3% and have an average size of 1.8 nm. The obtained N-CDs exhibit highly stable against photobleaching, ionic strengths, and can be used for selective and sensitive detection of Fe(III). It is postulated that the Fe³⁺-mediated fluorescence quenching is attributed to the charge transfer between N-CDs and Fe³⁺. In particular, the emission peaks from blue to red region can be tuned by interparticle distance of N-CDs, simply by increasing the concentration of N-CDs in aqueous solution, which indicates its potential applications as a promising optical image probe in multicolor cellular imaging.