In this study, carbon dots (CDs) were produced from yogurt, a fermented milk product, via microwave-assisted process (800 W) in 30 min without using any additional chemical agents. Yogurt CDs had outstanding nitrogen and oxygen ratios. These dots were monodisperse and about 2 nm sized. The toxicological assessments of yogurt carbon dots in human cancer cells and normal epithelial cells and their fluorescence imaging in living cell system were carried out. Yogurt carbon dots had intense fluorescent signal under confocal microscopy and good fluorescence stability in living cell system. The resulting yogurt carbon dots exhibited high biocompatibility up to 7.1 mg/mL CD concentration which may find utilization in medical applications such as cellular tracking, imaging and drug delivery. Yogurt carbon dots have potential to be good diagnostic agents to visualize cancer cells which may be developed as a therapeutic carrier.