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The 2-year-old girl was located by police ''safe and well'' at a South Dunedin address yesterday morning.
Police were called to the property just before 11am, following a tip-off the vehicle the girl had last been seen in was parked in the driveway.
Detective Inspector Kevin Hooper said the girl was found safe and well, and a 47-year-old woman at the address was charged with abduction.
Det Insp Hooper declined to comment on the woman's motive, as the case was before the courts.
The woman is alleged to have taken the girl from the Otago Farmers Market about 12.30pm.
The toddler had been returned to the custody of Child, Youth and Family, Det Insp Hooper said.