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Empathy reflects the ability to perceive and be sensitive to the emotional states of others, often associated with a motivation to care for their well-being. Empathy plays a pivotal role in motivating prosocial behavior. While the development of empathy has traditionally been examined with behavioral methods and observations, a growing body of work in developmental social neuroscience casts new light on the neurobiological mechanisms involved in interpersonal sensitivity. This article critically examines the current knowledge in developmental neuroscience in very young children. Breaking down empathy into functional components such as affect sharing, perspective-taking, caring for others, and emotional regulation, in conjunction with examining their developmental trajectory, is beneficial to research and theories in affective and developmental neuroscience.