In this work, the UV-Vis-NIR absorption spectrum of liquid-phase exfoliated two-dimensional (2D) MoS2 nanosheets, revealed two prominent peaks at 608 nm (2.04 eV) and 668 nm (1.86 eV). These peaks were blue-shifted compared to the reported literature values and are attributed to the quantum confinement effect. Interestingly, the WS2 nanosheets exhibited the same characteristic absorption peak at ~624 nm (1.99 eV). Raman spectroscopy analysis revealed that both nanosheets displayed distinctive peaks [377.8 cm-1 and 405.6 cm-1 for MoS2, 348.3 cm-1 and 417.9 cm-1 for WS2] that originate from optical phonon modes (E12g and A1g). These peaks are shifted toward higher wavenumbers (i.e., blue-shift or phonon-stiffening) compared to bulk MoS2 and WS2, probably due to enhanced Stokes Raman scattering. Subsequently, surface functionalization of the nanosheets with 2-Mercaptoethanol was successfully performed and confirmed using optical characterization techniques, including FT-IR spectroscopy. In addition, we determined the spectral broadening after functionalization, which would be attributed to photon confinement of the nano-sized layer structure, or to inhomogeneous broadening.