The expanding rate of urbanization and the increasing effect of global climate change exert significant stress on urban wetland habitats that are critically important as water suppliers, habitat providers, and climate modulators. Such ecosystems continue to experience pollution, loss of habitat, and changes in land use, which make the formulation of sound policy regulations and advanced techniques in the protection and sustainable management of these ecosystems all the more essential. Indeed, this chapter aims to discuss the challenges facing today’s urban wetlands and consider how to overcome such challenges via optimal policies, interdisciplinary cooperation, and climate-resilient policies. This one focuses on effective incorporation of wetlands into the built environment through concepts such as green infrastructure and the use of multifunctional space and green space. In addition, the study explores the application of nature-based solutions, for instance, the restoration of natural water regimes and the use of plant species, to increase the climate resilience of wetlands. In addition, it establishes an understanding of a community related to an urban wetland, an engagement of stakeholders, and the financial instruments related to the sustainable management of an urban wetland. Using the models such as the payments for ecosystem services and public-private partnership, this chapter demonstrates how urban wetlands can be financed for financial viability while enhancing climate change mitigation and adaptation. Finally, the chapter concludes that national, regional, and local amalgamation is an effective way of tackling the problems of climate change and the sustainable management of wetland ecosystems in urban areas.