Carbon dots (CDs) are types of carbon-based nanomaterials that have recently gained interest from both researchers and scientists due to their diverse and interesting physicochemical attributes, such as biocompatibility, tuneable optical properties, low cost, sufficient functional groups, and photocatalytic properties. Alongside their innate advantages, recent studies have been conducted by incorporating some new materials to create carbon-dot-based nanocomposite (CD-nanocomposite) matrices which enhance a particular property like photocatalytic activity. The aim of creating this emerging nanomaterial is to address the prevailing concern of removing persistent organic pollutants like pharmaceutical compounds which are known to be detrimental to both humans and animals. Photocatalytic degradation is a method of removing harmful substances present in water using a photocatalyst under light exposure. Photocatalysts are being modified to create CD-nanocomposites intended to degrade this type of pollutant. In this paper, a comprehensive discussion of past and present studies on the synthesis and utilization of CD-nanocomposites in the photocatalytic degradation of different pharmaceutical compounds like antibiotics and paracetamol ispresented. This includes the sources of CDs, synthesis methods, mechanism types, and degradation efficiency. In addition, a straightforward presentation of the research gaps and future research opportunities related to this study is established. Finally, this review paper is essential in the extension of research work that would enhance CD-nanocomposites and their application to photocatalysis.