Two-dimensional (2D) transition metal dichalcogenide (TMDC) materials have recently attracted great interest because of their tantalising prospects for a broad range of applications including electronics, optoelectronics, and energy storage. Unlike bulk materials, the device performance of atomically thin 2D materials is determined by the interface, thickness and defects. Plasma processing is very effective for diverse modifications of nanoscale 2D TMDC materials, owing to its uniquely controllable, effective processes and energy efficiency. Herein, we critically discuss selected recent advances in plasma modification of 2D TMDC materials and their optical and electronic (including optoelectronic) properties of relevance to applications in hydrogen production, gas sensing and energy storage devices. Challenges and future research opportunities in the relevant research field are presented. This review contributes to directing future advances of plasma processing of TMDC materials for targeted applications.