Extensive research is being conducted worldwide to find alternative and efficient systems to lessen the impacts of climate change and reduce environmental pollution. The genus Phragmites has proven ability to mitigate the environmental pollution of its surroundings. Common reed (Phragmites australis (Cav.) Trin. Ex. Steudel), a graminaceous plant of cosmopolitan nature, has been extensively studied especially for the mitigation of environmental contamination. The capability of common reed to grow well at extreme environmental conditions such as elevated CO2 and high temperature is conferred by several factors such as change of carbon trapping mechanism (from C3 to C4 and vice versa), microbial association and biochemical adaptations. P. australis has been a most preferred unique plant system, especially in ecological engineering for improving the quality of wastewater. This paper reviews the current state of knowledge regarding the suitability of Phragmites australis for environmental remediation and summarizes recent advancements in our understanding of this grass.