In the present study, an ecofriendly and zero-cost approach has been demonstrated for the preparation of carbon quantum dots by one-pot hydrothermal treatment of leaf extracts of neem (Azadirachta indica). The as-synthesized neem carbon quantum dots (N-CQDs) exhibited high fluorescent quantum yields (QYs) up to 27.2%. Moreover, N-CQDs also act with a peroxidase-like-mimetic activity toward the oxidation of peroxidase substrate 3,3′,5,5′-tetramethylbenzidine (TMB) in association with hydrogen peroxide (H₂O₂). Further, the kinetics of peroxidase-like catalytic activity follows the Michaelis–Menten and ping-pong pathway. In addition, the H₂O₂ sensitive TMB oxidation motivated the colorimetric detection of H₂O₂ which showed linearity from 0.1 to 0.5 mmol/L with a detection limit (LOD) of 0.035 mmol/L. Furthermore, the blue colors of oxidized TMB (ox-TMB) were selectively reduced in native TMB with ascorbic acid (AA) without any interference of other reducing agents. The linear range of AA detection was lying between 5 and 40 μM with a LOD up to 1.773 μM. The practicability assay of the proposed sensing system toward the detection of AA was also investigated in real sample analysis such as common fruits which showed good sensitivity to the presence of AA. Therefore, this convenient, ecofriendly, and cost-effective peroxidase-based sensing system opens a new platform for analysis of AA in real samples and in complex biological systems.