Few layered molybdenum di-sulphide (MoS2) nanosheets were synthesised using low temperature hydrothermal method. Hexagonal structure of MoS2 nanosheets was confirmed by the X-ray diffraction (XRD) and Raman spectroscopy techniques. High resolution transmission electron microscopy (HRTEM) studies revealed the formation of 5–6 layered nanosheets with thickness of 3–4 nm. Crystalline size and micro strain in MoS2 were calculated by various model including Williamson-Hall plot, Size-strain plot, Halder-Wagner and Scherrer formula. UV–Vis studies reveal sharp absorption cut off at 216 nm and large band gap of 2.67 eV caused by quantum confinement effect and lattice strain induced shift of orbital overlapping. Difference between two Raman peaks of 24 cm−1 confirmed the formation of 5–6 layers. Very high dielectric constant of 2600 was obtained at room temperature. Temperature dependent complex electric-modulus and dipolar relaxation of MoS2 nanosheets was investigated to understand the relaxation process and transport of charge carriers for the first time.