Two-dimensional (2D) layered materials hosting dislocations have attracted considerable research attention in recent years. In particular, screw dislocations can result in a spiral topology and an interlayer twist in the layered materials, significantly impacting the stacking order and symmetry of the layers. Moreover, the dislocations with large strain and heavily distorted atomic registry can result in a local modification of the structures around the dislocation. The dislocations thus provide a useful route to engineering optical, electrical, thermal, mechanical and catalytic properties of the 2D layered materials, which show great potential to bring new functionalities. This article presents a comprehensive review of the experimental and theoretical progress on the growth and properties of the dislocated 2D layered materials. It also offers an outlook on the future works in this promising research field.