With the expansion of cities and the development of industries, heavy metal pollution has caused a serious negative impact on the growth and development of animals and plants, which has become a global economic and social problem. Cadmium (Cd) is one of the main heavy metals that threaten the growth and development of plants, and it can lead to the imminent extinction of plants in severe cases. The part of upper reaches of the Yangtze River in China from Yibin to the Three Gorges Reservoir has been contaminated with varying degrees of Cd, and a rare and endangered plant called Myricaria laxiflora also lives in this area. The stress of heavy metal Cd on M. laxiflora populations is still unknown. In this study, we used the seedlings of M. laxiflora as materials, and adopted conventional physiological and biochemical analyses to characterize the morphological and physiological responses of M. laxiflora under different concentrations of Cd, and analyzed its response to Cd stress at the transcriptional level. The results showed that the wild population of M. laxiflora was stressed by the heavy metal Cd. High concentrations of Cd can inhibit the growth of M. laxiflora. M. laxiflora responded to the Cd stress through resistance substances such as malondialdehyde (MDA), hydrogen peroxide (H₂O₂), superoxide dismutase (SOD), catalase (CAT), and phytohormones such as auxin (IAA), gibberellin (GA) and abscisic acid (ABA). Transcriptome analysis was carried out on M. lasiflora seedlings exposed to 24 h, 48 h, and 72 h of Cd stress. Compared with 0 h (control), 2470, 11,707, and 11,733 differential expressed genes (DEGs) were identified, respectively. Among them, the number of down-regulated genes is more than the number of up-regulated genes. Transcriptome analysis showed that the upregulated genes were mainly enriched in MAPK signaling pathway, ethylene-induced pathway, ABA response pathway and other pathways, and the downregulated genes were mainly enriched in photosynthesis related pathways. Cd stress affected photosynthesis of M. laxiflora, and M. laxiflora may activate the MAPK signaling pathway through ethylene and ABA to improve the ability of Cd stress tolerance. These results reveal morphological changes, physiological and biochemical reactions and related key response pathways of M. laxiflora during Cd stress. It can provide a reference basis for habitat restoration and selection of wildlife environments for M. laxiflora.