Water-induced shape memory polymers (SMPs) show promising applications in biomedicine, biosensing, anti-counterfeiting and intelligent actuating systems. However, the dual function of shape morphing and color switching has not been achieved in the water-induced SMP system. Herein, a novel water-induced SMP with both color-switching fluorescence behavior and shape memory performance is reported. The material is fabricated by crosslinking poly(vinyl alcohol) (PVA) and pH-responsive fluorescent carbon quantum dots (CQDs). The incorporation of CQDs with PVA not only improves the shape recovery performance but also endows the material with color-switching features. To our best knowledge, such smart ability is first realized in this PVA/CQD SMP system, and this report provides a novel strategy for fabricating smart water-induced SMPs with adjustable shape recovery performance and fluorescence.