Molybdenum (Mo) is a trace element sensitive to oceanic redox conditions. The fidelity of sedimentary Mo as a paleoredox proxy of coeval seawater depends on the extent of Mo remobilization during postdepositional processes. Here we present the Mo content and isotope profiles for deep sediments from the Nankai Trough, Japan. The Mo signature suggests that these sediments have experienced extensive early diagenesis and hydrothermal alteration at depth. Iron (Fe)‐manganese (Mn) (oxyhydr)oxide alteration combined with Mo thiolation leads to a more than twenty‐fold enrichment of Mo within the sulfate reduction zone. Hydrothermal fluids and Mo adsorption onto Fe‐Mn (oxyhydr)oxides cause extremely negative Mo‐isotope values at the underthrust zone. These postdepositional Mo signals might be misinterpreted as expanded anoxia in the water column. Our findings highlight the importance of constraining postdepositional effects on Mo‐based proxies during paleoredox reconstruction.