Carbon quantum dots (CDs) are attractive nanoparticles for several applications, due to inherent properties such as excitation dependent photoluminescence emission and chemical stability. In the present work, we synthesized CDs from silk (Bombyx Mori) by a microwave-assisted method. The resultant spherical nanoparticles with high fluorescence under UV light were incorporated into PCL/silk matrix and electrospun into continuous nanofiber yarns (NF-Ys) by a one-step method. Besides granting yarns fluorescence, CD inclusion contributed to a decrease in fiber diameter and an increase in strength by 2.7-fold. Cell viability studies with mammalian lung cell lines show viability above 80%, suggesting good biocompatibilty. Such yarns show the potential to be assembled into larger structures such as biotextiles, with possible multifunctionalities such as antiviral, antibacterial, and biosensing applications.