Two-dimensional (2D) hybrid organic-inorganic perovskites (HOIPs) are attracting tremendous interest for their great scientific and technological potential in photovoltaics and optoelectronics. Although the ferroelectricity in 2D HOIPs has been greatly developed, however, to date no phosphonium-based 2D HOIP ferroelectrics have yet been found. Meanwhile, electrostriction plays an important role in the electromechanical behavior of ferroelectrics, while it has never been reported for 2D HOIP ferroelectrics. Here, we present the first phosphonium-based 2D HOIP ferroelectric (EATMP)PbBr4 (EATMP = (2-aminoethyl)trimethylphosphanium) with a direct bandgap of 2.84 eV. Notably, (EATMP)PbBr4 possesses a high Curie temperature of 534 K, which is the highest among all reported 2D HOIP ferroelectrics. Moreover, it exhibits a large electrostrictive coefficient of about 3.96 m(4) C-2 as well, far exceeding those of PVDF (1.3 m(4) C-2) and inorganic ones (similar to 0.034-0.096 m(4) C-2). With excellent ferroelectric and piezoelectric properties and the merit of easy fabrication, (EATMP)PbBr4 shows great potential in applications for future smart devices of actuators, transducers, and sensors.