Fluid reasoning is the cornerstone of human cognition, both during development and in adulthood. Despite this, the neural mechanisms underlying the development of fluid reasoning are largely unknown. In this review, we provide an overview of this important cognitive ability, the method of measurement, its changes over the childhood and adolescence of an individual, and its underlying neurobiological underpinnings. We review important findings from psychometric, cognitive, and neuroscientific literatures, and outline important future directions for this interdisciplinary research.