Molybdenum oxide (MoOx) nanosheets with high near‐infrared (NIR) absorbance and pH‐dependent oxidative degradation properties were synthesized, functionalized with polyethylene glycol (PEG), and then used as a degradable photothermal agent and drug carrier. The nanosheets, which are relatively stable under acidic pH, could be degraded at physiological pH. Therefore, MoOx‐PEG distributed in organs upon intravenous injection would be rapidly degraded and excreted without apparent in vivo toxicity. MoOx‐PEG shows efficient accumulation in tumors, the acidic pH of which then leads to longer tumor retention of those nanosheets. Along with the capability of acting as a photothermal agent for effective tumor ablation, MoOx‐PEG can load therapeutic molecules with high efficiencies. This concept of inorganic theranostic nanoagent should be relatively stable in tumors to allow imaging and treatment, while being readily degradable in normal organs to enable rapid excretion and avoid long‐term retention/toxicity. A photothermal nanoagent has been developed, namely degradable PEGylated molybdenum oxide, with strong near‐IR absorbance, high drug loading capability, and pH‐dependent degradation. It can be rapidly excreted from the body after intravenous injection and shows no appreciable in vivo toxicity. It also shows effective accumulation and retention in the tumor, which can then be eliminated by photothermal therapy treatment.