Police feared that Chloe Campbell had been snatched from her bed in Queensland, Australia, when her father awoke to find her missing.
Further concerns were raised for the toddler when an adult sized footprint was found outside the home.
But in a remarkable turn of events, Chloe has returned to the family home, and is now in hospital undergoing medical checks.
It's now claimed CCTV from the local area, which shows two men walking with a young child close to where Chloe disappeared , is being examined by police.
Officers working on the case are still asking for anyone who may have information to come forward.
A spokesman for the police force has confirmed Chloe was found after she walked back to the house.
He said: 'She was found at 1am back at the house after wandering back to where the the crime scene had been set up. She's now in Bundaberg Hospital where she is receiving medical treatment. It's still too soon to say if she has any injuries but she's under observation.'
And following Chloe's return, Inspector Kevin Guthridge, who's working on the case, called it a miracle, saying:
'It's one of those dreams that came true ... the greatest possible outcome for everyone. It is an absolute miracle she has returned to us.'
It is unclear at the present time where Chloe was for the 42 hours she was missing.
But her father, Garth Campbell, maintains that despite the joy of having Chloe returned to the family, he is convinced that she did not leave under her own steam.
'I don't think there's any possible way she's wandered off,' he said.
'She would't leave the yard by herself.'
The family were blaming themselves after leaving a window unlatched in the room where Chloe was sleeping.
Her parents made an emotional TV appeal for her return, pleading 'please don't hurt her, she's tiny.'
Chloe disappeared from the town of Childers, which has approximately 1,500 people.