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The current study examined age-related differences in electroencephalogram (EEG) activity during perception of means-end actions and production of grasps, and how EEG activity may relate to infants' motor competence. We collected data from 9- and 12-month-old infants during perception of means-end actions made with a tool and during execution of their own grasps. We computed event-related desynchronization (ERD) during perception and production events and assessed infants' reach-grasp competence by looking at their latency to complete grasps. Although we found greater ERD during perception of means-end actions in 9-month-olds compared with 12-month-olds, we found the relation between ERD during perception and emerging reach-grasp competence to be specific for 12-month-olds and not for 9-month-olds. These results provide evidence for an emerging neural system that supports the coupling of action and perception with infants' emerging motor competence in the first year of life.