Macrophytes have the potential to withstand pollutant-induced stress and can be used to clean contaminated water using phyto-extraction, phyto-degradation, phyto-filtration, phyto-stimulation, and phyto-volatilization technique(s). Phytoremediation through constructed wetlands (CWs) for eliminating inorganic and organic pollutants from household sewage and wastewater has attracted scientific attention. CWs are artificially engineered treatment systems that utilize natural cycles or processes involving soils, wetland vegetation, and plant and soil-associated microbial assemblages to remediate contaminated water and improve its quality. Herein, we present a detailed assessment of contaminant removal effectiveness in different CW systems, i.e., free-water surface or surface-flow constructed wetlands (FWSCWs/SFCWs), subsurface-flow constructed wetlands (SSFCWs), and hybrid constructed wetlands (HCWs). Several wetland floral species have been reported as potential phytoremediators, effectively reducing aquatic contamination through biodegrading, biotransforming, and bioaccumulating contaminants. Water hyacinth (Pontederia crassipes) is one of the most resistant macrophytes, capable of tolerating high nitrate (NO3−) and phosphate (PO42−) concentrations. Other aquatic weeds also effectively alleviate biological oxygen demand (BOD), chemical oxygen demand (COD), total dissolved solids (TDS), and pathogen levels and ameliorate the impact of different ionic forms of nitrogen (N), phosphorus (P), and trace elements (TEs). The review primarily focuses on using hydrophyte(s)-microbe(s) associations in different CWs as an essential phytoremediation tool for sustainable management of freshwater ecosystems, ecorestoration, and prospective resource recovery, favoring a circular bioeconomy (CBE).