Face processing refers to face detection, recognition of familiar faces, eye gaze processing and recognition of facial expressions of emotions. It is considered as core domain in development of theory of mind. Early development of face processing plays a key role in establishing primary social interactions, development of other cognitive abilities (e.g., language), and acquiring knowledge through social learning. The aim of this paper is critical evaluation of relevant research on development of the neurobiological basis of face processing during the first year of life. In this paper, we reviewed studies using various research techniques and methods, as well as different research approaches in order to depict the development and the neural basis of face processing through the first year of life. It seems that, although the localization of neural activation in this age is still unspecialized, it roughly corresponds to the localization of neural activation in adult population. Phylogenetic comparison indicated the superiority of human face processing in relation to primates, which is mainly associated with the species-specific nature of social relationships, interactions and complexity of community. Finally, findings show the importance of face processing in typically developing children as well as the importance of considering face processing as important indicator in early diagnostic procedures for autistic spectrum disorder.