SnO 2 , with its high theoretical capacity, abundant resources, and environmental friendliness, is widely regarded as a potential anode material for lithium‐ion batteries (LIBs). Nevertheless, the coarsening of the Sn nanoparticles impedes the reconversion back to SnO 2 , resulting in low coulombic efficiency and rapid capacity decay. In this study, we fabricated a heterostructure by combining SnO 2 nanoparticles with MoS 2 nanosheets via plasma‐assisted milling. The heterostructure consists of in‐situ exfoliated MoS 2 nanosheets predominantly in 1 T phase, which tightly encase the SnO 2 nanoparticles through strong bonding. This configuration effectively mitigates the volume change and particle aggregation upon cycling. Moreover, the strong affinity of Mo, which is the lithiation product of MoS 2 , toward Sn plays a pivotal role in inhibiting the coarsening of Sn nanograins, thus enhancing the reversibility of Sn to SnO 2 upon cycling. Consequently, the SnO 2 /MoS 2 heterostructure exhibits superb performance as an anode material for LIBs, demonstrating high capacity, rapid rate capability, and extended lifespan. Specifically, discharged/charged at a rate of 0.2 A g −1 for 300 cycles, it achieves a remarkable reversible capacity of 1173.4 mAh g −1 . Even cycled at high rates of 1.0 and 5.0 A g −1 for 800 cycles, it still retains high reversible capacities of 1005.3 and 768.8 mAh g −1 , respectively. Moreover, the heterostructure exhibits outstanding electrochemical performance in both full LIBs and sodium‐ion batteries.