Sleep, a basic biological need, is the primary behavioral state of infants and children. Sleep is often problematic in early childhood, with about 30% of infants and children reportedly not obtaining sufficient sleep. This article discusses the concept of “optimal” sleep in infants and children by presenting theoretical models for understanding sleep behavior and the development of sleep and circadian rhythms. It also addresses the questions of “optimal sleep for whom?”, “optimal sleep for what?”, and “what environmental factors influence optimal sleep?” Overall, data suggest high individual differences in sleep behavior and that early sleep indicators are central to health and developmental outcomes.