Water contamination with metals poses significant environmental challenges. The occurrence of heavy metals (HMs) prompts modifications in plant structures, emphasizing the necessity of employing focused safeguarding measures. Cadmium (Cd), lead (Pb), and chromium (Cr) emerge as particularly menacing toxins due to their high accumulation potential. Increasing the availability of organic acids is crucial for optimizing toxic metal removal via phytoremediation. This constructed wetland system (CWs) was used to determine how oxalic acid (OA) treatments of textile wastewater (WW) effluents affected morpho-physiological characteristics, antioxidant enzyme activity, oxidative stress, and HM concentrations in Phragmites australis. Multiple treatments, comprising the application of OA at a concentration of 10 mM and WW at different dilutions (25%, 50%, 75%, and 100%), were employed, with three replications of each treatment. WW stress decreased chlorophyll and carotenoid content, and concurrently enhanced HMs adsorption and antioxidant enzyme activities. Furthermore, the application of WW was found to elevate oxidative stress levels, whereas the presence of OA concurrently mitigated this oxidative stress. Similarly, WW negatively affected soil-plant analysis development (SPAD) and the total soluble proteins (SP) in both roots and shoots. Conversely, these parameters showed improvement with OA treatments. P. australis showed the potential to enhance HM accumulation under 100% WW stress. Specifically, there is an increase in root SP ranging from 9% to 39%, an increase in shoot SP from 6% to 91%, and an elevation in SPAD values from 4% to 64% compared to their respective treatments lacking OA inclusion. The OA addition resulted in decreased EL contents in the root and shoot by 10%–19% and 13%–15%, MDA by 9%–14% and 9%–20%, and H2O2 by 14%–21% and 9%–17%, in comparison to the respective treatments without OA. Interestingly, the findings further revealed that the augmentation of OA also contributed to an increased accumulation of Cr, Cd, and Pb. Specifically, at 100% WW with OA (10 mM), the concentrations of Cr, Pb, and Cd in leaves rose by 164%, 447%, and 350%, in stems by 213%, 247%, and 219%, and in roots by 155%, 238%, and 195%, respectively. The chelating agent oxalic acid effectively alleviated plant toxicity induced by toxins. Overall, our findings demonstrate the remarkable tolerance of P. australis to elevated concentrations of WW stress, positioning it as an eco-friendly candidate for industrial effluent remediation. This plant exhibits efficacy in restoring contaminants present in textile effluents, and notably, oxalic acid emerges as a promising agent for the phytoextraction of HMs.