A facile method has been proposed for the determination of Ferrous (Fe(II)) and Ferric (Fe(III)) ions using phosphate functionalized graphitic carbon nitride quantum dots (Ph-g-CNQDs) in an aqueous medium. The easy solvothermal procedure using oleic acid as the solvent yielded the Ph-g-CNQDs in less than 30 min. The communication among the Fe(II) and Fe(III) with Ph-g-CNQDs caused quenching of the blue Ph-g-CNQDs fluorescence signals. The Ph-g-CNQDs have been successfully characterized using X-ray diffractometry (XRD), X-ray Photoelectron spectroscopy (XPS), Transmission electron microscopy (TEM), Fourier Transform Infrared (FT-IR) spectroscopy, UV–vis absorption and photoluminescence spectrophotometry. The temperature dependent behavior of the Ph-g-CNQDs was also observed and various thermodynamic parameters have also been evaluated. The Ph-g-CNQDs displayed an excellent quantum yield of 60.54% using quinine sulfate as the standard reference. The developed method has been applied to water samples collected from different sources and good recoveries were observed which entitles this method as apt for real time monitoring.