Constructed wetlands (CWs) have emerged as innovative and efficient systems to address domestic wastewater pollutants. This review discusses the different types of CWs—subsurface flow, free water surface, and hybrid systems—and their efficacy in removing organic matter, nutrients (phosphorus and nitrogen), pathogens, and emerging contaminants. CWs integrate physical, chemical, and biological mechanisms to offer a holistic and sustainable approach to wastewater treatment. Its adaptability and scalability make it highly valuable, particularly in regions without centralized treatment infrastructure. Although challenges such as land use and climate sensitivity remain, the benefits of CWs, such as reduced energy requirements, biodiversity support, and cost savings, are substantial. Incoming advances in CWs design and operation promise to further improve its efficiency and expand its use, having an important role in the reduction of global water pollution, particularly domestic pollution, and environmental sustainability. This review highlights the potential of CWs technology as a promising solution for domestic wastewater treatment.