An extract of fresh guava leaves (Psidium guajava) was used as a green carbon precursor to fabricate blue fluorescent carbon quantum dots (GCQDs) by hydrothermal process. The GCQDs show bright blue fluorescence emission under UV light with an excitation wavelength of 350 nm and emission at 450 nm. The physical structure of GCQDs was characterized by Fourier-transform infrared spectroscopy (FT-IR), Raman spectroscopy, X-ray diffraction (XRD), High-resolution transmission electron microscope (HR-TEM) and atomic force microscopy (AFM). GCQDs 80 μg inhibited the growth of waterborne pathogens Escherichia coli and Salmonella typhi. We also investigated the catalytic activity of the GCQDs on the removal of two azo dyes, namely Congo red and bromophenol blue, with and without NaBH4. The GCQDs showed an excellent reduction of color intensity of both dyes without NaBH4 within 30 min of treatment.