Layered transition metal dichalcogenides have a rich phase diagram and they feature two-dimensionality in numerous physical properties. Co1/3NbS2 is one of the newest members of this family where Co atoms are intercalated into the van der Waals gaps between NbS2 layers. We study the three-dimensional electronic band structure of Co1/3NbS2 using both surface and bulk sensitive angle-resolved photoemission spectroscopy. We show that the electronic bands do not fit into the rigid band shift picture after the Co intercalation. Instead, Co1/3NbS2 displays a different orbital character near the Fermi level compared to the pristine NbS2 compound and has a clear band dispersion in the kz direction despite its layered structure. Our photoemission study demonstrates the out-of-plane electronic correlations introduced by the Co intercalation, thus offering a different perspective on this compound. Finally, we propose how Fermi level tuning could lead to exotic phases such as spin density wave instability.