Abstract Background Carbon dots (CDs) are of particular interest in numerous applications. However, their efficiency for heavy metal removal from wastewater was not yet reported. Herein, we rationally synthesized CDs from petroleum coke waste via hydrothermal treatment in the presence of ammonia. Results This drove the formation of outstanding photoluminescent, water-soluble, biocompatible, and high yield of monodispersed sub-5 nm CDs. The CDs are co-doped with high 10% of N and 0.2% of S. The as-prepared CDs possess unprecedented photoluminescent properties over broad pH range making these dots unique efficient pH sensor. Conclusions Chitosan (CH)–CDs hybrid hydrogel nanocomposite film was further prepared as a platform membrane for the removal Cd²⁺ metal from wastewater. The as-prepared CH–CDs membranes show relatively good mechanical properties, based on stress resistance and flexibility to facilitate handling. The equilibrium state was reached within 5 min. Intriguingly, the UV-light illuminations enhanced the Cd²⁺ removal efficiency of the photoluminescent CDs substantially by four times faster under. It was found that adsorption followed pseudo-second-order kinetic and Langmuir isotherm models. The maximum adsorption capacity at 25 °C was found to be 112.4 mg g⁻¹ at pH 8. This work paves the way to new applications of CDs in water treatment.