The development of electrodes with high performance and long–term stability is crucial for commercial application of vanadium redox flow batteries. This study compared the performance of VRFB with thermal‐treated and MXene‐modified carbon paper. To prepare the MXene, a modified‐etching process with ammonium‐bifluoride (NH4HF2) led to a mild and efficient conversion of the MAX‐phase to MXene compared to etching process with hydrofluoric‐acid (HF). Electron microscopy studies revealed that the etching process with NH4HF2 led to MXene nanostructures with a large interlayer spacing. The results show that at a current density of 60 mA cm‐2, the voltage efficiency with a NH4HF2‐etched MXene‐modified negative electrode increased by 25.5%, 12.5%, and 4% in comparison with pristine, thermal‐treated, and HF‐etched MXene‐modified electrode, respectively. The maximum power density of the battery was increased by more than 40%. In long–term cycling experiments the MXene‐modified electrode exhibited excellent stability over 1000 cycles of charge‐discharge, with 0.05% discharge capacity decay per cycle, amongst the lowest values reported to date and four times lower than for thermally‐treated electrode. The superior performance was linked to the improved electrical conductivity and wettability, higher interlayer spacing, and lower charge transfer resistance for the V2+/V3+ redox reaction.