Azo dye degradation can be achieved by simulating a series of anaerobic and aerobic conditions within the constructed wetland (CW) system. The current investigation evaluated the effectiveness of a baffled horizontal-vertical CW system, planted with Typha angustifolia, simulating anaerobic-aerobic conditions to treat carbon-deficient synthetic dyeing wastewater containing 100 mg/L Reactive Yellow 145 (RY145) azo dye. In the absence of an available carbon source in dyeing wastewater, an optimum quantity of sodium acetate was supplemented as the substrate for microbial degradation of RY145. Influent dyeing wastewater characteristics were 5555 ADMI colour, 461 mg/L chemical oxygen demand (COD) and 39 mg/L total nitrogen (TN). During the operation period, the CW system achieved 97% colour, 87% COD, 95% ammonium nitrogen (NH4+-N) and 71% TN removals at 4 d hydraulic retention time (HRT). Favourable environmental conditions, such as low redox conditions and substrate availability in horizontal CW, contributed to a significant reduction in colour (96%). Most TN reduction (67%) happened in horizontal CW by denitrification and plant assimilation. The metagenomic study revealed that Proteobacteria, Bacteroidetes, Chloroflexi and Firmicutes were responsible for pollutant degradation within horizontal CW. The UV–visible spectra and high-resolution liquid chromatograph mass spectrometer (HR-LCMS) analysis confirmed that dye degradation intermediates generated from the breakage of azo bonds were eliminated in vertical CW with high redox conditions. The results of the phytotoxicity and fish toxicity experiments demonstrated a substantial toxicity reduction in the CW system-treated effluent.