Functional near-infrared spectroscopy (fNIRS) is a method of monitoring brain oxygenation. This technique investigates hemodynamic changes in the cerebral cortex. fNIRS is widely used in clinical and scientific research. In this review, we focus on the applications of fNIRS on neonates. Here, applications form two distinct categories: task associated studies, and hemoglobin phase change studies. fNIRS is non-invasive, easily performed, and repeatable. However, it has limited monitoring depth and spatial resolution when used in newborns. Moreover, with recent technological advances, it is now possible to explore neuronal activity patterns using fNIRS in both healthy and pathological conditions. For more than 20 years, fNIRS has enabled clinicians to gain insight into cerebral development and mechanisms of injury in neonates. fNIRS is a useful supplement to existing technologies due to its ability to interrogate the neonatal brain function.