The Bible doesn’t say anything one way or the other about infant baptism. This in itself is significant because if it were mandatory we would expect to see direct references to it. As it stands there are only a few verses that speak of households being baptized. Because they’re unclear opinions differ on whether they include infants.

That said infant baptism has been around for a very long time – from at least from the early second century. Apparently the practice replaced circumcision in the Church.

There has always been debate on whether or not infants should be baptized though. Some make a strong case in support of the practice by comparing baptism with circumcision. Others argue against it saying that since baptism came after belief and acceptance of Christ, and an infant couldn’t possibly understand such things, they shouldn’t be baptized until they were older.

Today, churches that don’t baptize infants “dedicate” them to the Lord by having the congregation pray for the child.

So the first issue we have to deal with is whether or not baptism saves. Then we have look at the eternal fate of infants who die.
 

DOES BAPTISM SAVE?

"There is also an antitype which now saves us - -baptism (not the removal of the filth of the flesh, but the answer of a good conscience toward God), through the resurrection of Jesus Christ." (1 Peter 3:21)
 

The key to this verse is the phrase, "not the removal of the filth of the flesh." What Peter is saying is that baptism saves us -- not water baptism -- but rather baptism of the Holy Spirit.

Then in Matthew 3:11 it says:

"I [John the Baptist] baptize with water those who turn from their sins and turn to God. But someone is coming soon who is far greater than I am – so much greater that I am not even worthy to be his slave. He will baptize you with the Holy Spirit and with fire."

Water baptism is an outward expression of an inward act. In other words, water baptism is a way of showing the world you have been wash clean of your sins because you have accepted Jesus as your Lord and Savior and His Holy Spirit is living in you (Ephesians 1).

If we compare baptism with circumcision we read of those who were physically circumcised but were judged because they were “uncircumcised in the heart” (Jeremiah 9:25-26). Also, if circumcision saved then atoning sacrifices would have been unnecessary and the just would not live by faith, but by works. This contradicts Habakkuk 2:4 as well as Galatians 3:10-13.

In the same way if baptism in itself could save then salvation would be through works and not faith which contradicts Romans 1:17 and Ephesians 2:8.

Neither practice saved, but both were symbolic of being set apart for God. For the Jew circumcision symbolized being God’s chosen people. For the Christian baptism represented being washed away of sins though the work of Christ.

So since we’re saved by faith and not baptism the issue of infant baptism becomes irrelevant. The issue now narrows down to what happens to infants who die before they’re able to accept faith...
 

THE ETERNAL FATE OF INFANTS, CHILDREN, AND THE MENTALLY HANDICAPPED WHO DIE

Because infants are descendants of Adam they, like all of us, must face physical death, “…death reigned from Adam to Moses, even over those who had not sinned according to the likeness of the transgression of Adam…” (Romans 5:14)

But because condemnation is based on the clear rejection of God's revelation and not simple ignorance of it (Luke 10:16; John 12:48; 1 Thessalonians 4:8), and because infants have not willingly rejected (or even understood) this revelation, the death of Christ covers their sins and they can go to heaven.

To build further support for this view let’s look at two more passages:

The law was presented to those who could understand it. Those who couldn’t were not held accountable.

"And Ezra the priest brought the law before the congregation both of men and women, and all that could hear with understanding, upon the first day of the seventh month. And he read therein before the street that was before the water gate from the morning until midday, before the men and the women, and those that could understand; and the ears of all the people were attentive unto the book of the law…" (Nehemiah 8:2-3)
 

"Even you shall not go in there. Joshua the son of Nun, who stands before you, he shall go in there. Encourage him, for he shall cause Israel to inherit it.

'Moreover your little ones and your children, who you say will be victims, who today have no knowledge of good and evil, they shall go in there; to them I will give it, and they shall possess it." (Deuteronomy 1:37-39)

The Jews were restricted from entering the promise land (a biblical type of heaven) because of a lack of faith (again we see that the just live by faith) but this restriction didn’t apply to the little children because they had no knowledge of good and evil.

These two passages are significant because they show God doesn’t judge those who are unable to understand. This can be applied to infants, small children, and the mentally handicapped. God will do what is right.

On a completely unrelated note, notice in the Deuteronomy passage that Moses (Who represents the law) couldn’t lead the Jews to the promise land (Which represents salvation) but Joshua, whose name in Greek is Jesus, could? There is a picture being painted here. Jesus was able to do what the law never could – lead us to salvation. The Old Testament is filled with hundreds, if not thousands of little hints like that.