The Austin Police Department tweeted the good news about Sailor Tucker just after 5:30 p.m. Wednesday.
While information about how and where she was found was not disclosed, the police department said she was located with the help of the U.S. Marshals Office.
A 22-year-old woman, whom authorities earlier described as a suspect tied to the reported abduction, was taken into custody.
Jessica Skelton, who is the child's biological mother, was detained on unrelated charges.
Police had said Sailor was last seen Tuesday night and that she was in danger.