Urban wetlands are vital to natural ecosystems, offering diverse ecosystem services essential for biodiversity and human well-being. With water security emerging as a global concern due to population growth, climate change, and urbanization, this study highlights the critical role of urban wetland conservation in enhancing urban water security, focusing on the Kottooli wetlands in Calicut, Kerala. The study critically examines the urban water demand, supply systems, and the wetland’s limited but significant link to water security. By assessing the wetlands’ quantitative and qualitative contributions, the research explores socioeconomic impacts of wetland transformation through perception surveys and analyzes factors degrading water quality and quantity. It underscores the implications of these changes for urban water security. Through an extensive literature review and empirical analysis, the study evaluates ecosystem service losses and gains, emphasizing the need for integrated conservation strategies. The findings reveal the wetlands’ potential to contribute to urban water needs, including flood control and enhanced water retention, critical for urban resilience. By protecting, restoring, and strategically managing wetlands, Calicut can address environmental challenges, improve urban sustainability, and contribute to global sustainability goals, showcasing the value of wetlands beyond aesthetics and cultural significance.