The synthesis of a new class of fluorescent carbon nanomaterials, carbon-dot-decorated nanodiamonds (CDD-ND), is reported. These CDD-NDs are produced by specific acid treatment of detonation soot, forming tiny rounded sp(2) carbon species (carbon dots), 1-2 atomic layers thick and 1-2 nm in size, covalently attached to the surface of the detonation diamond nanoparticles. A combination of nanodiamonds bonded with a graphitic phase as a starting material and the application of graphite intercalated acids for oxidation of the graphitic carbon is necessary for the successful production of CDD-ND. The CDD-ND photoluminescence (PL) is stable, 20 times more intense than the intrinsic PL of well-purified NDs and can be tailored by changing the oxidation process parameters. Carbon-dot-decorated DNDs are shown to be excellent probes for bioimaging applications and inexpensive additives for PL nanocomposites.