Magnetoencephalography (MEG) can be effectively used to record fetal and neonatal cognitive abilities/functions by recording completely non-invasively the magnetic fields produced by the active neurons in the brain. During the last trimester and the first months of life, the cognitive capabilities related to emotion recognition and language acquisition develop rapidly. Latest research shows that already the newborn has advanced abilities related to processing emotional information and speech sounds. These abilities form the basis of the child's development towards mastering social tasks and native language. The possibilities of using fetal or neonatal MEG in studying these important abilities is discussed, especially in relation to face detection and orientation to faces, as well as those required for making sense of complex, natural auditory environments.