Macrocyclic molecules, like cyclodextrins, are essential in interacting with other molecules and are important actors in supramolecular chemistry. Cyclodextrins, derived from starch enzymatic degradation, exhibit strong stability and excellent complexation abilities. Carbon nanodots (CNDs), especially β-cyclodextrin-based CNDs, offer biocompatibility, non-toxicity, and accessible synthesis advantages. They find applications in diverse fields such as medicine, environmental monitoring, and food safety. Due to their low toxicity and brightness, CNDs have gained prominence in sensing, catalysis, and optoelectronics. β-Cyclodextrin-based biocompatible and easily functionalizable CNDs show promise in biomedical diagnostics, drug delivery, and environmental monitoring. Their potential in medical imaging, formulation of personal care products, and intelligent material development is noteworthy. Looking ahead, β-cyclodextrins and CNDs are poised for significant contributions in drug formulation, nanomedicine, and responsive materials. Continuous research in nanotechnology is likely to unveil new applications and enhance their integration across various industries. The future holds promise for addressing complex challenges in medicine, environmental science, and beyond through the unique properties of β-cyclodextrins and CNDs.