Nanocomposites of molybdenum disulfide (MoS2) and poly(ethylene oxide) (PEO) were prepared by the exfoliation/absorption method that involved the hydrolysis of lithiated MoS2 in an aqueous solution of PEO. The absorption and subsequent interaction of PEO on the colloidal MoS2 formed a nanocomposite which restacked into layered secondary particles. X-ray diffraction and high resolution TEM indicated that highly disordered nanocomposites were produced when the Lix(PEO)yMoS2 stoichiometry was limited to y < 1. An improvement of greater than 5x in capacity accompanied by high cycle stability and efficiency was observed for the disordered nanocomposites providing a novel approach to utilize low-cost MoS2 and similar materials for a high capacity energy storage system.