From the early days of life infants distinguish between social and non-social physical entities and have different expectations for the way these two entities should move and interact. At the same time, we know very little about the cortical systems that support this early emerging ability. The goal of the current research was to assess the extent to which infant’s processing of social and non-social physical entities is mediated by distinct information processing systems in the temporal cortex. Using a cross-sectional design, infants aged 6–9 months (Experiment 1) and 11–18 months (Experiment 2) were presented with two types of events: social interaction and mechanical interaction. In the social interaction event (patterned after Hamlin et al., 2007), an entity with googly eyes, hair tufts, and an implied goal of moving up the hill was either helped up, or pushed down, a hill through the actions of another social entity. In the mechanical interaction event, the googly eyes and hair tufts were replaced with vertical black dots and a hook and clasp, and the objects moved up or down the hill via mechanical interactions. FNIRS was used to measure activation from temporal cortex while infants viewed the test events. In both age groups, viewing social and mechanical interaction events elicited different patterns of activation in the right temporal cortex, although responses were more specialized in the older age group. Activation was not obtained in these areas when the objects moved in synchrony without interacting, suggesting that the causal nature of the interaction events may be responsible, in part, to the results obtained. This is one of the few fNIRS studies that has investigated age-related patterns of cortical activation and the first to provide insight into the functional development of networks specialized for processing of social and non-social physical entities engaged in interaction events.