Isolated wetlands are by definition disconnected from other surface water bodies. However, many naturally occurring isolated wetlands have been artificially ditched and drained. Wetland restoration is an emerging area of interest for reduction of watershed discharges of nutrients and other solutes, as well as reduction of hydrograph peak discharges. The role of isolated wetlands in these processes is the subject of the current study. Four isolated wetlands have been monitored for three years, with emphases on wetland water and nutrient budgets. A three-dimensional finite element numerical model was also developed to describe the dynamic interaction of subsurface and surface water exchange in these systems. The model was found to adequately represent the hydraulics of isolated wetlands within a watershed throughout the year. Data analyses and model results indicated that water entered the wetlands primarily via saturation excess overland flow and was subsequently discharged from the wetlands to the subsurface. The wetlands were found to be recharging groundwater the vast majority of the time that the wetlands were saturated. These results have important implications for how isolated wetlands are viewed within watershed-scale restoration schemes.