The demand for high-performance energy storage systems with enhanced energy and power density is growing alongside the renewable energy, mobile devices, and electric vehicle sectors. MXenes, a class of two-dimensional (2D) transition metal carbides, nitrides, and carbonitrides, have emerged as promising electrode materials for next-generation energy storage systems owing to their high electrical conductivity, hydrophilicity, and tunable surface chemistry. This review provides a comprehensive analysis of recent progress in MXene-based energy storage systems, focusing on MXene synthesis routes, their performance in energy storage applications, associated challenges, and future research directions. It discusses the advantages and disadvantages of various MXene synthesis routes and MXene-based composites, defect engineering, and MXene oxidation, which are crucial for energy storage applications, including rechargeable batteries and supercapacitors. The review also explores the challenges and prospects of scaling up MXenes and their composites for energy storage applications and the existing obstacles to integrating these materials into energy storage systems, with the aim of developing next-generation energy storage systems.