Optical nonlinearity in 2D materials excited by spatial Gaussian laser beam is a novel and peculiar optical phenomenon, which exhibits many novel and interesting applications in optical nonlinear devices. Passive photonic devices, such as optical switches, optical logical gates, photonic diodes, and optical modulators, are the key compositions in the future all‐optical signal‐processing technologies. Passive photonic devices using 2D materials to achieve the device functionality have attracted widespread concern in the past decade. In this Review, an overview of the spatial self‐phase modulation (SSPM) in 2D materials is summarized, including the operating mechanism, optical parameter measurement, and tuning for 2D materials, and applications in photonic devices. Moreover, some current challenges are also proposed to solve, and some possible applications of SSPM method are predicted for the future. Therefore, it is anticipated that this summary can contribute to the application of 2D material‐based spatial effect in all‐optical signal‐processing technologies.