Coastal wetlands play a vital role in carbon (C) sequestration, named ‘blue carbon’. The review aims to disentangle the processes and influencing factors, including elevated atmospheric CO2, global climate warming, sea level rise and anthropogenic activities. Firstly, we provided an overview of C processes, including input, output, and deposition, in coastal wetlands. We then summarized the impacts of different factors on C processes by modifying soil physicochemical properties, plant growth, vegetation type, and microbial community composition. Vegetation composition was a major contributor to C inputs, and C outputs was mainly controlled by microbial decomposition. Increased atmospheric CO2 concentration and associated climate warming often enhanced vegetation growth, while climate warming also promoted soil C decomposition. As a result, C storage could increase under mild warming conditions in the short-term, but decrease in the long-term as the severity of warming intensifies. Elevated salinity, caused by sea level rise, can be harmful to plant growth and inhibit organic C decomposition because of the reduced biomass and the weakened metabolic capacity of microorganisms. Most of human activities, such as reclamation, can lead to less C input and more C output, resulting in decreased C storage in coastal wetlands. Additionally, we also illustrate various coastal wetland restoration methods aimed at enhancing C sequestration, including legal frameworks, scientific theories, vegetation management, hydrological restoration, and other relevant constructions. Vegetation management could benefit plant growth and enhance C input effectively, and hydrological restoration can maintain the harmonious development of coastal wetland ecosystems. Other constructions, including breakwater, spillway, and dredged material, could protect coastal wetlands, especially facing sea level rise. This review offers valuable theoretical support and scientific references for the sustainable development and management of coastal wetlands in a changing climate.