Integrated circuit designers face challenges in using complementary metal oxide semiconductor (CMOS) technology as it has a large leakage current and scalability challenge in ultra-nanoscale regime. Quantum-dot Cellular Automata (QCA) is a nanotechnology that can replace CMOS for designing ultra-deep submicron circuits and overcoming CMOS limitations. In this research paper, a novel area-efficient 1:2 demultiplexer is proposed using QCA technology. A demultiplexer is an important combinational circuit used in communication systems and computer memories. It receives serial input data and routes data in parallel to multiple outputs. QCA Designer and QCA Pro-tools are used for layout, simulation, and analysis of power dissipation. 11 QCA cells are utilized in the construction of the proposed 1:2 demultiplexer. The cell area and layout cost of the proposed demultiplexer have improved to 42.11 % and 55.56 % of the current best design, respectively. An essential factor to consider when developing integrated circuits is power dissipation. The proposed design dissipates less power. The energy dissipation of the proposed design has improved to 57.67 % at the kink energy level of 1.5 of the current best design.