A team from Brigham University, Utah, created the device which not only keeps the baby's feet warm but also uses pulse oximetry to monitor its heart rate.
If the child stops breathing or has a significant change in heart rate the monitor will notify parents by alerting them on their smart phone, the 'Daily Mail' reported.
Jacob Colvin and his five colleagues hope the device, which is completely wireless and uses safe, non-invasive technology, will reduce the annual cases of Sudden Infant Death Syndrome (SIDS), which sees at least 300 babies die suddenly and unexpectedly in the UK every year.
"Our hope is that we can give parents time to react and see that something's wrong before it's too late," Colvin said.
Colvin and his team recently debuted a prototype of their Owlet Baby Monitor at the third annual Student Innovator of the Year competition.