The incident happened at the Novotel Queenstown Hotel, on Marine Parade, about 2.10pm.
The girl appeared to have fallen about 4m from a second floor balcony, but landed on grass next to some concrete, an Otago Daily Times reporter at the scene said.
An eyewitness, Jose Lacambra, of Argentina, said the girl was lucky to escape more serious injuries.
"She nearly fell on the concrete, but was very lucky.
"I heard her mother screaming. We went over and were holding people back. It was a little girl. She was crying a lot - crying a lot.
"But I think that was better, because before...''
Emergency services were quickly on the scene and the young girl was rushed to hospital, Mr Lacambra said.
Another person, who declined to be named, said the girl seemed to be OK after the fall.
"She was OK - nothing broken, I don't think.
``She was in her mother's arms. A good result, really.''
The girl appeared to be about five years old, the witness added.
