Due to its high toxicity, persistence, and bioaccumulation in the food chain, controlling cadmium (Cd) pollution in wastewater is urgent. Activated carbon is a popular material for removing Cd. To improve the Cd(II) adsorption efficiency by increasing the number of oxygen-containing functional groups, Phragmites australis -activated carbon (PAAC) was modified with mannitol at a low temperature (150 °C). The textural and chemical characteristics of PAAC and modified PAAC (M-PAAC) were analyzed by surface area analysis, elemental analysis, Boehm’s titration, Fourier-transform infrared spectroscopy, and X-ray photoelectron spectroscopy. Batch adsorption experiments were conducted to investigate the influence of Cd(II) concentration, contact time, ionic strength, and pH on Cd(II) adsorption. The main adsorption mechanisms of Cd(II) on activated carbon were quantitatively calculated. The results showed that mannitol modification slightly decreased the S BET (5.30% of PAAC) and increased the content of carboxyl, lactone, and phenolic groups (total increase of 43.96% with PAAC), which enhanced the adsorption capacity of PAAC by 58.59%. The adsorption isotherms of PAAC and M-PAAC were described well using the Temkin model, while the intraparticle diffusion model fitted the Cd(II) adsorption kinetics best. Precipitation with minerals was a crucial factor for Cd(II) adsorption on activated carbon (50.40% for PAAC and 40.41% for M-PAAC). Meanwhile, the Cd(II) adsorption by M-PAAC was also dominated by complexation with oxygen-containing functional groups (33.60%). This research provides a method for recovering wetland plant biomass to prepare activated carbon and efficiently treat Cd-containing wastewater.