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Authorities triggered the alert for 9-year-old Jazlyn Mendez and 5-year-old Jionny Mendez around 2:40 p.m. because it was believed they'd been abducted in Wilmer, a town of 3,600 people along Interstate 45 southeast of Dallas.
Jaquelyn Hernandez, 26, was also wanted in their disappearance.
By about 4:30 p.m., DPS said the children had been found safe and the alert was discontinued.
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Officials did not provide further details on the circumstances or how the children are related to Hernandez or each other.