<p>The noteworthy properties (excellent photoluminescence, high aqueous/organic solubility, good stability, non-toxicity, chemical inertness, etc.) of carbon and graphene quantum dots (CQDs and GQDs) made them available for diverse applications including sensors, bioimaging, catalysis, light emitting diodes, anti-counterfeiting, security ink, and many more. Even though CQDs/GQDs can be achieved from various chemicals and biomass, the conversion of plastics waste into luminescent carbon-based dots is a sustainable way by which not only such non-biodegradable and hazardous waste can be managed up to considerable extent but also it can be applied in multifaceted fields to result value-added circular economy. The continuously increasing global production rate and relatively feeble recycling efficiency of plastics is victim of plethora of plastics waste on the earth. This review aims to highlighting the development and timely updates in the transformation of plastics waste into valuable CQDs and GQDs. Besides critical evaluation of various synthetic approaches in the preparation of carbon-based dots from common plastics waste, demonstration of the utility of these carbon nanomaterials in diverse fields from environmental remedy to catalysis, biology, optics, corrosion, anti-biofilm and energy are some of the remarkable attempts in the direction of plastics management. Finally, challenges and future prospects may glimpse new idea in the progress of sustainable technology.</p> Graphical Abstract <p></p>