Stereotyped motor behavior manifests as rhythmic, repetitive movements. It is common in several neurologic and psychiatric disorders where it is considered maladaptive. However, it also occurs early in typical development where it serves an adaptive function in the development of complex, controlled motor behavior. Currently, no framework accounts for both adaptive and maladaptive forms of motor stereotypy. We propose a conceptual model that implicates sensorimotor mechanisms in the phenomenology of adaptive and maladaptive stereotypy. The extensive structural and functional connectivity between sensory and motor neural circuits evidences the importance of sensory integration in the production of controlled movement. In support of our model, motor stereotypy in normative development occurs when the sensory and motor brain regions are immature and the infant has limited sensory and motor experience. With maturation and experience, complex movements develop and replace simple, stereotyped movements. This developmental increase in motor complexity depends on the availability of sensory feedback indicating that the integration of sensory information with ongoing movement allows individuals to adaptively cater their movements to the environmental context. In atypical development, altered neural function of sensorimotor circuitry may limit an individual’s ability to integrate sensory feedback to adapt movements to appropriately respond to environmental conditions. Consequently, the motor repertoire would remain relatively simple, resulting in the persistence of motor stereotypy. A framework that considers motor stereotypy as a manifestation of low motor complexity resulting from poor sensorimotor integration has many implications for research, identification and treatment of motor stereotypy in a variety of developmental disorders.