It happened around 8:15 p.m. in the 700 block of Elm Street in Weldon.
Police tell ABC11 that the Jaxson Clay was inside the home when someone drove by and fired shots at the house.
The boy, who authorities said would have celebrated his second birthday two days before Christmas, was shot in the head and died at the hospital around midnight.
"It is a tough time not only for the family but for us as law enforcement to lose a little child this close to the holidays," Weldon Police Department Chief James Avens Jr. said. "We want to do everything we can to bring resolution to the family."
The incident remains under investigation. Officials were seen examining bullet holes in front of the home overnight.
Police do not have any suspects or a motive in the case at this time.
"This close to the holidays everybody's in the loving spirit, but to see someone lose their life so young ... that kid will not get a chance to see Christmas this time," Chief Avens said. "Their parents will not get a chance to see him walk across the stage at graduation."
Officials are asking that the public come forward and help provide information.
"Don't be afraid. If you don't want to leave your name you can be anonymous," Chief Avens said.
The State Bureau of Investigation has also been called in to help with the investigation.
If you have info call Weldon Police Department at (252) 536-3136.