Congenital hemiplegia is the most common form of cerebral palsy in children born at term, and stroke is the number one cause. Neonatal ischemic stroke includes perinatal arterial ischemic stroke, presumed pre- or perinatal stroke, and cerebral sinovenous thrombosis, all of which have emerged as important contributors to cerebral palsy. Of increasing interest is how the overlapping list of associations and risks for stroke and cerebral palsy relate to each other. Stroke-induced injury is focal, and the preservation of normal areas of brain may afford unique opportunities for plastic adaptation. The implications of this essential difference are stressed in a discussion of how the epidemiology, pathophysiology, diagnosis, and therapeutic advancements in perinatal stroke relate to the outcome of cerebral palsy.