The collision took place at around 11:00am this morning at Carnbeg, on the Old Armagh Road 177.
One woman and a baby were travelling in one of the vehicles involved in the incident, while a man was travelling in the other car.
After the crash, the woman was airlifted to Tallaght Hospital in Dublin with serious leg injuries. The infant sustained only minor injuries and was taken to Our Lady of Lourdes Hospital in Drogheda.
The male driver of the second vehicle, a young man in his 20s, was also taken conveyed to Our Lady of Lourdes Hospital in Drogheda.
The road is currently closed for a technical examination.