In the last decade, the rise of two-dimensional (2D) materials has attracted a tremendous amount of interest for the entire field of photonics and opto-electronics. The mechanism of light-matter interaction in 2D materials challenges the knowledge of materials physics, which drives the rapid development of materials synthesis and device applications. 2D materials coupled with plasmonic effects show impressive optical characteristics, involving efficient charge transfer, plasmonic hot electrons doping, enhanced light-emitting, and ultrasensitive photodetection. Here, we briefly review the recent remarkable progress of 2D materials, mainly on graphene and transition metal dichalcogenides, focusing on their tunable optical properties and improved opto-electronic devices with plasmonic effects. The mechanism of plasmon enhanced light-matter interaction in 2D materials is elaborated in detail, and the state-of-the-art of device applications is comprehensively described. In the future, the field of 2D materials holds great promise as an important platform for materials science and opto-electronic engineering, enabling an emerging interdisciplinary research field spanning from clean energy to information technology.