The upcoming generation of functional electronics in the era of artificial intelligence, and IoT requires extensive data storage and processing, necessitating further device miniaturization. Conventional Si CMOS technology is struggling to enhance integration density beyond a certain limit to uphold Moore's law, primarily due to performance degradation at smaller dimensions caused by various physical effects, including surface scattering, quantum tunneling, and other short-channel effects. The two-dimensional materials have emerged as highly promising alternatives, which exhibit excellent electrical and mechanical properties at atomically thin thicknesses and show exceptional potential for future CMOS technology. This review article presents the chronological progress made in the development of two-dimensional materials-based CMOS devices with comprehensively discussing the advancements made in material production, device development, associated challenges, and the strategies to address these issues. The future prospects for the use of two-dimensional materials in functional CMOS circuitry are outlooked, highlighting key opportunities and challenges toward industrial adaptation.