Single and few layer molybdenum disulfide (MoS2) was exfoliated from the bulk form through a liquid phase exfoliation procedure. Highly concentrated suspensions were prepared that were stabilized against reaggregation through adsorption of nonionic polymers to the sheet surface. These exfoliated particles showed strong photoluminescence at an energy of 1.97 eV which is in the visible-light region. These exfoliated MoS2 sheets were then used to catalyze the degradation of a model dye upon exposure to visible light.