Neoadjuvant chemotherapy for breast cancer is now a valuable treatment option for both operable tumours and for downstaging of inoperable tumours. Prediction and early monitoring of tumour response to therapy has steadily evolved over the last past few years as a result of new functional MRI techniques. The use of imaging as an early surrogate biomarker of response is appealing, because it might allow for a window of opportunity during which treatment regimens can be tailored accordingly, depending on the expected response of the patient. It helps in identifying a group of patients with high likelihood of benefit. The clinical effect of treatment with neoadjuvant chemotherapy would ultimately result in a reduction in morbidity and undue costs. We have reviewed the literature and identified studies that have assessed these techniques, such as dynamic contrast-enhanced MRI, diffusion-weighted MRI and magnetic resonance spectroscopy, as predictive and early response indicators, and highlight the current clinical awareness of their use.