Okay kiddo, sometimes countries don't get along with each other and might even have fights or wars. Neutrality means that a country wants to stay out of those fights and wars and not take anyone's side.
Imagine that there are two kids fighting over a toy. If you're neutral, you don't help either one of them and just stay out of it. You don't like to see them fight, but you also don't want to get involved and make things worse.
In international relations, being neutral means that a country doesn't take a side in conflicts between other countries. They don't make alliances or agreements with one side or the other. They just want to be friends with everyone and not get involved in any fights.
Some countries choose to be neutral because they don't want to risk getting into a war and losing their people and resources. Other countries might want to be neutral because they believe that it's the right thing to do and they want to promote peace and cooperation.
Does that make sense, little one?