Yes, it’s completely normal for a 1-year-old baby to sleep on his or her knees. Usually, it's called the fetal position. Most children outgrow that by 4-5 years old, but it is not harmful. Most babies prefer this position because it is comfortable, safe, and warm.  If your baby sleeps this way, don't worry about it, and just let him or her do what they like. The best thing you can do for your baby is to teach him or her how to fall asleep on his or her own, sleep in his or her own bed, fall asleep again if he or she wakes up, and teach good sleeping habits.  The American Academy of Pediatrics recommends that you should always put your baby to sleep on their backs, not on their stomachs or sides.