Myelination is a fundamental process of neurodevelopment that facilitates the efficient brain messaging and connectivity that underlies the emergence and refinement of cognitive skills and abilities. Healthy maturation of the myelinated white matter requires appropriate neural activity and coordinated delivery of key nutritional building blocks, including short and long-chain polyunsaturated fatty acids, phospholipids, and sphingolipids. While many of these nutrients are amply supplied by breastmilk, they are often provided in only limited quantities in infant formula milk. Milk fat globule membrane (MFGM) is a rich source of phospholipids, including sphingomyelin and has been associated with improved cognitive development in infants and children when added to infant formula. To determine if added bovine MFGM is also associated with improved myelination, this study used myelin-sensitive MRI to compare myelination trends in healthy infants and toddlers who received the same infant formula with and without added bovine MFGM in two temporal cohorts: Without Added MFGM between 2009 and 2016; and With Added MFGM between 2018-2020. We also used the Mullen Scales of Early Learning (MSEL) to compare verbal, non-verbal, and overall cognitive abilities. Matched for important demographic and socioeconomic characteristics, we found that children who received infant formula with added MFGM showed improved myelination in motor-related areas (motor cortices, internal capsule, and cerebellum) and improved MSEL nonverbal and fine motor scores. No significant differences in verbal or overall cognitive ability scores were noted. These results support the importance of phospholipids, sphingolipids, and sphingomyelin in promoting brain myelination and cognitive development.