The brainstem's important role in the motor and sensory systems makes it a vital structure for studying pediatric development. However, the developing brain's rapid growth presents significant challenges when studying preterm infants. We investigated the regional differences of the brainstem between healthy and developmental delayed preterm infants. A spatiotemporal atlas was constructed from 28 training subject magnetic resonance (MR) scans and their brainstem manual tissue segmentations (whole brainstem) and parcellations (midbrain, pons, medulla) to capture a wide range of growth over time. The brainstem in all 269 MR scans in our database was automatically segmented using an age-specific template derived from the tissue-atlas training data to initiate an atlas-based Expectation-Maximization framework. We used tissue segmentations to re-register the age-specific tissue maps and derive an accurate non-rigid transformation from the atlas into the space of the subject scan. Template propagation was used to place an age-specific brainstem parcellation from the atlas into the space of the subject MRI. Multiple linear regression analysis was performed to model the relationship between regional brainstem volume calculated from the automated parcellations and specific Bayley Scales of Infant and Toddler development-Third Edition (BSID-III) cognitive, language, and motor composite scores at 18 months of age. We covaried with post-menstrual age at scan, age at birth, gender, and with and without supratentorial volume. Significant association existed for all brainstem volumes except for the pons and all BSID-III scores near birth age (mean=32.7+/-3.2 weeks) while there was nearly no significance for the same models in children near full-term age (mean=40.6+/-2.7 weeks). This supports the hypothesis that smaller total brainstem, midbrain, and medulla volumes measured shortly after preterm birth may be useful as a biomarker to predict poor developmental outcome at 18 months of age, while measurements later (near full term age) may be less useful as brain volume recovers.