Abstract2D materials, owing to their nearly atomic thickness, have emerged as promising candidates across a broad spectrum of next‐generation devices and systems. In the post‐graphene era, molybdenum‐based dichalcogenides (MoX2, where X = S, Se, Te), possessing a graphene‐like structure, represent one of the most promising subsets among 2D transition metal dichalcogenides (TMDs) due to their extensively researched and distinctive electronic, optical, and mechanical properties. Further with their distinct properties of different phases (2H, 1T) make it attractive for both fundamental and applied research. It finds diverse applications, spanning from optoelectronics to catalysis and sensor development. In this review article, the unique crystal structural properties of MoX2 are highlighted and their different synthesis methods, incorporating recent advancements in synthesis approaches discussed. Subsequently the recent development of MoX2 nanocomposite based on carbon, metal, metal oxide and various polymer discussed. Finally, the key challenges impeding the advancement of sensing applications and propose avenues for future development, drawing upon the current progress in 2D MoX2 and their nanocomposites also find mention in this review.