Functional quantum dots (QDs) grafted with ferric dithiocarbamate complex layers (QDs-Fe(III)(DTC)3) were fabricated and demonstrated to be selectively reactive to nitric oxide. The dithiocarbamate (DTC) was covalently conjugated to the amine-coated QDs by a condensation reaction of the carboxyl in DTC and the amino polymer in surface of QDs. The weak fluorescence of QDs-Fe(III)(DTC)3 was attributed to the energy transfer between CdSe/ZnS and Fe(III)(DTC)3 complex at the surface of the functionalized quantum dots. Nitric oxide could greatly switch on the fluorescence of QDs-Fe(III)(DTC)3 by displacing the DTC in the Fe(III)(DTC)3 accompanied by reducing Fe(III) to Fe(II), thus shutting off the energy transfer way. The limit of detection for nitric oxide was estimated to be 3.3 μM and the specific detection was not interfered with other reactive oxygen species. Moreover, the probe was demonstrated for the sensing of gaseous nitric oxide, and the visual detection limit was as low as 10 ppm, showing the potential for sensing nitric oxide by the naked eye.