The effects of molybdenum disulfide (MoS₂) on thermal expansion and mechanical properties of epoxy composites were investigated. MoS₂ nanosheets were exfoliated by ultra-sonication and reinforced into epoxy as nanofiller by mechanical stirring. Transmission electron microscopy observations demonstrated that MoS₂ exhibited better dispersion in epoxy matrix. Thermal expansion measured by dilatometer has revealed that increasing MoS₂ fractioninepoxy matrix significantly reduced the coefficient of thermal expansion (CTE). The 0.5wt% MoS₂ incorporated epoxy composites shows 35.8% reduction in CTE as compared to neat epoxy. The addition of small fraction of MoS₂(0.1wt%) in the composites increased the tensile and flexural strength 39.2% and 9.0% respectively. The glass transition temperature (T_g) of 0.1wt% MoS₂ incorporated epoxy composites shows 7.39% increase in T_g.