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Recently, the developments of two-dimensional (2D) ferroelectrics and multiferroics have attracted much more attention among researchers. These materials are useful for high-density devices for multifunctional applications such as sensors, transducers, actuators, non-volatile memories, photovoltaic, and FETs. Although several theoretical works have been reported on layered ferroelectrics, experimental work is still lacking in single to few-atomic layers of 2D ferroelectric materials. In this review, we have discussed the recent theoretical as well as experimental progress of 2D ferroelectric and multiferroic materials. The emphasis is given to the development of single to few-atomic layers of 2D ferroelectric materials. In this regard, the recent developments of 2D ferroelectric polarization on vanadium oxyhalides VOX2 (X=I, Br, Cl, and F), distorted phase d1-MoTe2, In2Se3, and SnSe are discussed. d1-MoTe2 shows Curie temperature (TC) above room temperature, while few-layered In2Se3 shows in-plane ferroelectricity and interesting domain wall dynamics in a single atomic layer of SnSe. This follows the discussion of multiferroic materials based on transition metal oxyiodide MOI2 (M=Ti, V, and Cr), double perovskite bilayer, and iron-doped In2Se3. While pristine In2Se3 shows ferroelectric properties, iron-doped In2Se3 shows multiferroicity. Finally, the potential applications of 2D ferroelectrics and multiferroics have been discussed that follow the challenges and opportunities in this field, which can guide the research community to develop next-generation 2D ferroelectric and multiferroic materials with interesting properties.