In this study, we utilized processed edible commercial wheat and oat flours to synthesize highly fluorescent carbon dots using green hydrothermal synthesis. The as‐synthesized carbon quantum dots (CQDs) were characterized using UV‐vis spectrophotometry, photoluminescence spectrophotometry, high‐resolution transmission electron microscopy, and Fourier transform infrared spectroscopy. The synthesized wheat‐CQDs (W‐CQDs) and oat‐CQDs (O‐CQDs) had monodispersed spherical shapes with average sizes of 3–8 and 5–10 nm, respectively, and exhibited strong fluorescence intensity and excitation‐dependent photoluminescence. The W‐CQDs and O‐CQDs were highly dispersed in aqueous solutions and exhibited bright green and blue fluorescence, respectively, under UV light (λex=380 and 370 nm). Both CQDs contained abundant functional groups, including amino, hydroxyl, and carboxyl groups, which may play a major role in biological applications. The W‐CQDs and O‐CQDs showed good free‐radical scavenging capacity in the 2,2‐diphenylpicrylhydrazyl (DPPH) and H2O2 assays. The anti‐inflammatory activities of W‐CQDs and O‐CQDs were more effective than that of the standard, with EC50 values of 1.8 and 1.3 mg/mL, respectively, in the protein denaturation assay. Additionally, the CQDs exhibited low cytotoxicity toward NIH3T3 fibroblast and human HeLa cervical cancer cells when treated with a 5‐mg/mL concentration. Therefore, green‐synthesized W‐CQDs and O‐CQDs are easily available, less cytotoxic, and applicable to therapeutic and cell nanocarrier purposes. Wheat and Oat flours extract used for the synthesis of CQDs by sustainable hydrothermal method. The synthesized W‐CQDs and O‐CQDs exhibits potent optical properties. W‐CQDs and O‐CQDs are low toxicity against NIH3T3 cells and HeLa cancer cells. The synthesized CQDs have good anti‐oxidant and anti‐inflammatory activity in in‐vitro assays.