Water level fluctuations are among the main factors affecting the development of wetland vegetation communities, carbon sinks, and ecological processes. Hongze Lake is a typical seasonal lake wetland in the Huaihe River Basin. Its water levels have experienced substantial fluctuations because of climate change, as well as gate and dam regulations. In this study, long-term cloud-free remote sensing images of water body area, net plant productivity (NPP), gross primary productivity (GPP), and Fractional vegetation cover (FVC) of the wetlands of Hongze Lake were obtained from multiple satellites by Google Earth Engine (GEE) from 2006 to 2023. The trends in FVC were analyzed using a combined Theil-Sen estimator and Mann-Kendall (MK) test. Linear regression was employed to analyze the correlation between the area of water bodies and that of different degrees of FVC. Additionally, annual frequencies of various water levels were constructed to explore their association with GPP, NPP, and FVC.The results showed that water level fluctuations significantly influence the spatial and temporal patterns of wetland vegetation cover and carbon sinks, with a significant correlation (P<0.05) between water levels and vegetation distribution. Following extensive restoration efforts, the carbon sink capacity of the Hongze Lake wetland has increased. However, it is essential to consider the carbon sink capacity in areas with low vegetation cover, for the lakeshore zone with a higher inundation frequency and low vegetation cover had a lower carbon sink capacity. These findings provide a scientific basis for the establishment of carbon sink enhancement initiatives, restoration programs, and policies to improve the ecological value of wetland ecosystem conservation areas.