A baby's brain tries to observe others actions and then tries to imitate them in an attempt to learn social behavior says a new study.
Yes, a baby can understand certain things he or she observes. A study says that there is a link between what a baby observes, how a baby understands what was observed and how a baby acts in an attempt to copy those actions of others.
In fact, that is the starting point of social cognition and the basis for the development of social behavior in kids. You can easily observe the phenomena when you have a baby around.
When a baby is observing, catch a toy and he tries to do the same. Throw it aside and he tries to do the same in an attempt to imitate you.
In fact, that is how babies gradually try to understand the world, its mechanics and various social actions and interactions.
This is the reason why it is better to expose your baby to good people and good actions so that the baby learns only the good side of life before developing individualistic mindset. In fact, that is why it is better to not smoke or drink or show aggression when babies are around.