Ultrafast fiber lasers play an increasingly vital role in diverse fields of science and industry. In this study, a novel NbTe2 nanosheet-based saturable absorber (SA) was prepared by using liquid phase exfoliation and flame brush technology for the first time. Using a twin balance measurement system, the nonlinear optical absorption property was checked. It was found that the fabricated NbTe2 nanosheets-based SA has excellent saturable absorption properties with a large modulation depth of 5.3 %, a very high saturation intensity of 1.11 GW/cm2, and a low non-saturation loss of 63.6 %. After inserting the NbTe2 nanosheets-based SA into a ring-cavity ytterbium-doped fiber laser (YDFL), a stable soliton mode-locking state was achieved. A 176-fs ultrafast soliton pulse train was successfully generated at 1029.76 nm with the repetition rater of 3.097 MHz. Thanks to the unique and very high saturation intensity of NbTe2 nanosheets, the proposed YDFL system achieved a maximum peak power of 96.3 kW and a single pulse energy of 14.09 nJ under 370 mW pump power. These findings indicate that NbTe2 nanosheets have great potential for generating ultra-short optical pulses with higher peak power in mode-locked fiber lasers.