Recently, carbon dots (CDs) as newly developed carbon-based nanomaterials due to advantages such as excellent photostability and easy surface functionalization have generated wide application prospects in fields such as biological imaging and chemical sensing. The multicolor emission carbon dots (M-CDs) were acquired through the selection of different carbon source precursors, change of synthesis conditions and synthesis environment. Therefore, the aim of this review is to summarize the latest research progress in polychromatic CDs from the perspectives of synthesis strategies, luminescent mechanisms, luminescent properties and applications. This review focuses on how to prepare MCDs by changing raw materials and synthesis conditions such as reaction temperature, synthesis time, synthesis pH, and synthesis solvent. This review also presents the optical properties of MCDs, concentration effects, solvent effects, pH effects, elemental doping, and surface passivation on them, as well as their creative applications in the field of sensing applications. It is anticipated that this review will serve as a guide for the development of multifunctional M-CDs and inspire future research on controllable design and preparation of M-CDs.