Wetlands are among the most productive ecosystems on Earth, providing critical ecological services such as water purification, flood regulation, carbon sequestration, and biodiversity conservation. In India, these ecosystems have immense ecological and socio-economic significance, yet they face severe degradation due to anthropogenic pressures, urban expansion, and agricultural encroachment. This review examines the current understanding of wetland restoration in India and its dual role in enhancing carbon sequestration and biodiversity conservation. Drawing upon recent research and case studies from different regions of India, the paper highlights the potential of both freshwater and coastal wetlands to serve as natural climate solutions. It also identifies the challenges, gaps, and opportunities in restoration practices and policy implementation. The review concludes that comprehensive restoration programs, backed by scientific monitoring, policy coherence, and community participation, are essential for maximizing the ecological and climate benefits of wetlands in India.