Abstract Realization of semiconductor materials at the two-dimensional (2D) limit can elicit exceptional and diversified performance exercising transformative influence on modern technology. We report experimental evidence for the formation of conceptually new 2D indium oxide (InO) and its material characteristics. The formation of 2D InO was harvested through targeted intercalation of indium (In) atoms and deposition kinetics at graphene/SiC interface using a robust metal organic chemical vapor deposition (MOCVD) process. A distinct structural configuration of two sub-layers of In atoms in “atop” positions was imaged by scanning transmission electron microscopy (STEM). The bonding of oxygen atoms to indium atoms was indicated using electron energy loss spectroscopy (EELS). A wide bandgap energy measuring a value of 4.1 eV was estimated by conductive atomic force microscopy measurements (C-AFM) for the 2D InO.