Abstract: ubmerged macrophyte Vallisneria natans is widely employed in lake ecological restoration due to its strong water purification capacity. However, large-scale planting and rapid growth of V. natans may result in the release of odor compounds, introducing new ecological risks. To date, research on the characteristics of odor compound release from V. natans and the underlying mechanisms affecting aquatic environments remains limited. In this study, the restored waterbody of Bandao Town in Wuhan’s Houguan Lake was selected as the research site. Monthly monitoring was conducted from April to December 2023 to investigate the temporal dynamics of water physicochemical parameters (TN, TP, Chla, etc.) and odor compounds (notably Azulene) during the growth of V. natans. Structural equation modeling (SEM) was applied to elucidate the influence of environmental factors on the release of odor compounds. The results demonstrated that V. natans planting led to significant improvements in water quality, with TP, TN, and Chla concentrations decreasing by 84.5%, 31.4%, and 55.6%, respectively; water transparency increased by 315%, and dissolved oxygen rose by 21.1%. Concurrently, V. natans released a variety of odor compounds during its growth and metabolism, with Azulene identified as the predominant component. The concentration of Azulene was closely associated with the growth cycle of V. natans and water temperature. Correlation analysis and SEM indicated that elevated water temperature promoted both the growth of V. natans and the synthesis and release of Azulene. Increased plant coverage not only improved water quality but also elevated the concentration of Azulene in the water. This study highlights that while V. natans planting markedly enhances water quality, it also poses a risk of odor compound release, particularly Azulene, which is strongly linked to plant growth and water temperature. In aquatic ecosystem restoration, it is essential to balance the dual effects of water quality improvement and odor compound emission, providing a scientific basis and practical guidance for odor risk management in future ecological restoration projects.