Imitation is a complex mechanism defined as the ability to reproduce observed behaviour. Imitation has two primary functions: the function of learning and social function. Children imitate their parents and other people around them from their earliest childhood. The child is every so often being the model, too because adults often imitate children’s behaviour. That reciprocity in imitation has a function in the development of different abilities. Verbal imitation is characterized by imitation of words and sentences. Nonverbal imitation is an imitation of facial expressions, body movements, and actions with objects. The aim of this paper is to determine the course of development of verbal and nonverbal imitation and problematize the possible role of imitation in the early development of communication and language in children from birth to three years of age by reviewing the existing literature. Also, the aim is to show the different types of imitation and the factors that may influence them. Finally, the methodology of imitation research and the application of all of the above in clinical practice will be problematized. The presence of imitation before 6 months of age is still a matter of debate, but most experts agree that the existence of imitation after 6 months of age is indisputable. Between 7 and 9 months of age, children start to increasingly actively imitate spontaneous actions with objects. The peak of nonverbal imitation is considered to be between 13 and 15 months of age. After that, the use of verbal imitation increases. Around 12 months of age, children imitate words and sentences frequently. In other words, they go through an echolalia phase. Frequent verbal imitation in typical development lasts up to 24 months. Spontaneous verbal and nonverbal imitation is associated with the development of various socio-cognitive, communication, and language abilities. Imitation is influenced by many factors. The methodology of imitation research is not unified, subsequently leading to uneven results. Research on imitation in typically developing children has its implications in clinical practice.