Abstract The discovery of a record high figure of merit (ZT) of ≈2.6 associated with bulk SnSe has stimulated considerable enthusiasm in searching for 2D systems with similar high ZT. However, previously reported 2D thermoelectric (TE) materials generally possess very low ZT due to the high lattice thermal conductivity (κ L ) and/or small power factor (PF). Herein, a very high ZT (≈2.08) value associated with atomically thin 2D KAgSe nanosheet is reported, which also exhibits an unprecedented low intrinsic κ L (≈0.03 Wm −1 K −1 at 700 K for trilayer) and fairly large PF. The low κ L mainly stems from the high lattice anharmonicity induced by both the “interfacial shear slip” vibrations and the asymmetric “AgSe pair” vibrations from distorted AgSe 4 tetrahedrons. Meanwhile, the complete band‐extrema alignment and coexistence of heavy and light bands result in an optimal Seebeck coefficient and electrical conductivity, thereby a large PF. This work suggests not only an alternative way to acquiring high lattice anharmonicity but also a highly competitive 2D TE candidate for wide applications.