Background: Cesarean section (CS) delivery is a surgical procedure that can have lifesaving effects on both mother and child. However, there is inconsistent evidence showing either motor developmental and neurodevelopmental benefits associated with cesarean section. In recent decades, Taiwan has recorded some of the highest cesarean delivery rates in the world. Additionally, it is common to see a decrease or elimination of physical activity during pregnancy, due to various personal, environmental, and cultural reasons. Research suggests physical activity is associated with improved infant motor development, and can reduce the risks for medically inclined cesarean sections. There is a lack of research regarding the association between mode of delivery and physical activity during pregnancy, and developmental outcomes in children. Objectives: This study aims to look at the relationships between mode of delivery, physical activity during pregnancy, and child developmental outcomes among children in Taiwan from birth to eighteen months. Methods: The study population was selected from the Taiwan Birth Cohort Study. Infants’ development and exposure conditions were assessed through at-home interviews with standardized questionaries at six and eighteen months of age. Logistic regressions, multivariable logistic regressions, and the Cox proportional hazard model were performed to assess the possibility of neurodevelopmental delay associated with mode of delivery and physical activity during pregnancy. Results: In the present study, 19,458 mother-infant cases were included in the analysis, with 12,912 mothers in the vaginal delivery (VD) group, of which 8,368 mothers did not report PA during pregnancy, while 4,544 did report PA during pregnancy. Among the 6,636 mothers that went underwent CS, 4,700 mothers did not report PA during pregnancy, while 193 mothers did report PA during pregnancy. After controlling for infant, maternal, and household factors, infants birthed through mothers that underwent vaginal delivery and physical activity during pregnancy showcased the most reduced risk for developmental delay among the eight recorded milestones. Conclusions: This study shows overall benefits to childhood motor development among mothers that underwent vaginal delivery and performed physical activity during pregnancy. Possible developmental delays are observed among infants that were birthed through mothers that underwent cesarean section and that did not perform physical activity during pregnancy. The results of this study can posit encouragement for physical activity during pregnancy and encourage mothers to undergo vaginal delivery.