Brachial plexus birth palsy occurs at a rate of 1/1000-4/1000 live births despite advances in prenatal and obstetric care. The majority of children recover spontaneously, however some are left with permanent neurologic deficit. Shoulder pathology results from muscle imbalance created by pairing of weak or paralyzed muscles with unaffected muscle groups around the shoulder. This imbalance results in soft tissue contracture and can cause progressive glenohumeral joint morphological changes. Contractures of internal rotation are most common and may be a source of disability for the child. Treatment of the infant with brachial plexus palsy is initially centered around therapy and prevention of contracture. Surgical intervention can improve global shoulder function, and is reserved for patients who develop functionally limiting contractures, glenohumeral joint morphological changes, or findings of instability. A thorough physical examination, appropriate imaging, and assessment of the goals and expectations of the family are warranted prior to proceeding with any treatment course. The progressive and functionally limiting course of the shoulder sequelae in brachial plexus palsy emphasizes the need for early recognition and appropriate management. The purpose of this manuscript is to review orthopedic evaluation and management of neonatal brachial plexus palsy (NBPP) to promote early recognition and prompt referral.