Infants are frequently exposed to music during daily activities, including free play, and while viewing infant‐directed videotapes that contain instrumental music soundtracks. In Experiment 1, an instrumental music soundtrack was played during a live or televised demonstration to examine its effects on deferred imitation by 6‐, 12‐, and 18‐month‐old infants. Transfer of information was indexed via deferred imitation of the target actions following a 24‐h delay. For half the infants, the music context was also reinstated at the time of test. Performance by experimental groups was compared to that of a baseline control group that participated in the test session without prior exposure to the demonstration. Imitation performance was above baseline for the live groups but not for the video groups regardless of age or the music context at test. In Experiment 2, we added matched sound effects to the video demonstration and infants performed above baseline. We conclude that the music track creates additional cognitive load, disrupts selective attention to the target actions and inhibits transfer of learning from television of the imitation task. Music may impair an infant's ability to translate information from a two‐dimensional to three‐dimensional world even if the auditory context remains the same. Copyright © 2010 John Wiley & Sons, Ltd.