Flexible photodetectors have exotic significance in recent years due to their enchanting potential in future optoelectronics. Moreover, paper-based fabricated photodetectors with outstanding flexibility unlock new avenues for future wearable electronics. Such photodetector has captured scientific interest for its efficient photoresponse properties due to the extraordinary assets like significant absorptive efficiency, surface morphology, material composition, affordability, bendability, and biodegradability. Quantum-confined materials harness the unique quantum-enhanced properties and hold immense promise for advancing both fundamental scientific understanding and practical implication. Two-dimensional (2D) materials as quantum materials have been one of the most extensively researched materials owing to their significant light absorption efficiency, increased carrier mobility, and tunable band gaps. In addition, 2D heterostructures can trap charge carriers at their interfaces, leading increase in photocurrent and photoconductivity. This review represents comprehensive discussion on recent developments in such photodetectors functionalized by 2D materials, highlighting charge transfer mechanism at their interface. This review thoroughly explains the mechanism behind the enhanced performance of quantum materials across a spectrum of figure of merits including external quantum efficiency, detectivity, spectral responsivity, optical gain, response time, and noise equivalent power. The present review studies the intricate mechanisms that reinforce these improvements, shedding light on the intricacies of quantum materials and their significant capabilities. Moreover, a detailed analysis of the technical applicability of paper-based photodetectors has been discussed with challenges and future trends, providing comprehensive insights into their practical usage in the field of future wearable and portable electronic technologies.