The discovery and control of new phases of matter is a central endeavour in materials research. The emergence of atomically thin 2D materials, such as transition-metal dichalcogenides and monochalcogenides, has allowed the study of diffusive, displacive and quantum phase transitions in 2D. In this Review, we discuss the thermodynamic and kinetic features of 2D phase transitions arising from dimensionality confinement, elasticity, electrostatics, defects and chemistry unique to 2D materials. We highlight polymorphic, ferroic and high-temperature diffusive phase changes, and examine the technological potential of controlled 2D phase transitions. Finally, we give an outlook to future opportunities in the study and applications of 2D phase transitions, and identify key challenges that remain to be addressed.