Abstract Significance Resting-state networks (RSN), particularly the sensorimotor network, begin to develop in the third trimester of pregnancy and mature extensively by term age. The integrity and structure of these networks have been linked to neurological health outcomes in neonates, highlighting the significance of monitoring RSN development. To this end, functional near-infrared spectroscopy (fNIRS) has emerged as a neuroimaging technique that utilizes near-infrared light to indirectly measure neural activity by detecting changes in oxygenated (HbO) and deoxygenated (HbR) hemoglobin concentrations. Compared to other imaging methods, fNIRS is non-invasive and allows for naturalistic monitoring of neural activity at the bedside, particularly in awake infants. Aim Use fNIRS to expand on previous findings regarding the development of functional networks in awake neonates. Approach fNIRS was acquired in 41 term-born neonates (17 females, gestational age range=36+0 to 42+1 weeks) within the first 48 hours after birth. Results Group level analysis of functional connectivity showed strong positive connectivity in most channel-pairs over the sensorimotor network, especially the left hemisphere (q < 0.05). Next, we examined the relationship between functional connectivity, gestational age and postnatal age, while controlling for sex and subject effects. Both gestational and postnatal age were found to be positively associated with an increase in functional connectivity in the sensorimotor RSN, especially in channels covering the posterior portion. Conclusions Our findings emphasize the importance of considering developmental changes in functional networks in awake infants. Moreover, our study demonstrates the potential of fNIRS as a valuable tool for studying neural activity in naturalistic settings in neonates.