Coal is one of the most abundant natural carbonaceous materials. This paper reports a novel oxidative chemical method for the synthesis of high-value carbon dots (CDs) from cheap and abundant low-quality high‑sulfur coals for use in high-end applications. These CDs were synthesized by using wet-chemical ultrasonic stimulation-induced process which is environmentally facile and less drastic compared to other chemical methods of production of CDs. The sizes of the synthesized CDs from different types of coal samples were estimated to be in the range of 1-4 nm, 1-6 nm, 2-5 nm, and 10-30 nm. The quantum yield (QY) of the CDs was determined and it was found to be around 3-14%. For high-end field application, the CDs were further tested for toxicity and were reported to be safe for environmental and biological applications. The cell image analysis under the fluorescence microscope further indicated that the synthesized CDs could be used as a promising bio-compatible material for optical-imaging as well as bio-imaging. The CDs showed promising fluorescent sensing property and can be utilized as a good probe for silver ion detection/sensing. The CDs is also found to be a promising reagent for silver nanoparticles synthesis. The results provide a new avenue for large-scale synthesis of CDs.