Carbon dots (CDs), a class of carbon-based sub-ten-nanometer nanoparticles, have attracted great attention since their discovery fifteen years ago. Because of the outstanding photoluminescence properties, photostability, low toxicity, and low cost, CDs have potential to replace traditional semiconductor quantum dots which have serious drawbacks of toxicity and high cost. This review covers the common top-down and bottom-up methods for the synthesis of CDs, different categories of CD precursors (small molecules, natural polymers, and synthetic polymers), one-pot and multi-step methods to produce CDs/photocatalyst composites, and recent advances of CDs on photocatalysis applications mostly in pollutant degradation and energy areas. A broad range of precursors forming fluorescent CDs are discussed, including small molecule sole or dual precursors, natural polymers such as pure polysaccharides and proteins and crude bio-resources from plants or animals, and various synthetic polymer precursors with positive, negative, neutral and hydrophilic, hydrophobic, or zwitterionic feature. Because of the wide light absorbance, excellent photoluminescence properties and electron transfer ability, CDs have emerged as a new type of photocatalyst. Recent work of CDs as sole photocatalyst or in combination with other materials (e.g., metal, metal sulfide, metal oxide, bismuth-based semiconductor, or other traditional photocatalysts) to form composite catalyst for various photocatalytic applications are reviewed. Possible future directions are proposed at the end of the article on mechanistic studies, production of CDs with better controlled properties, expansion of polymer precursor pool, and systematic studies of CDs for photocatalysis applications.