That very young infants attribute goals to the object-directed reaches of others is well characterized, but we understand little of what infants encode about the objects being acted on. The present study examined whether the context surrounding the reach, specifically the presence of another object, prompts infants to encode feature information of the target object. To test this, 9-month-old infants in Experiment 1 observed an actor repeatedly reach for one of two objects, while in Experiment 2, infants observed repeated reaches towards one, singly presented object. In both experiments, following habituation, infants observed the actor reach for either the same object as in the past, or a previously unseen, novel object. In Experiment 1, but not Experiment 2, infants looked longer at reaches to the novel object, indicating that this action was unexpected. Considered along with research on visual attention and infant object perception, these results suggest that the initial presence of an alternative object influenced infants’ expectations for future reaches, perhaps by prompting infants to create a feature-bound representation of the target. Thus, the context surrounding a goal-directed action may flexibly influence infants’ action processing to minimize cognitive load.