The bus was reported missing from the terminal, located at Main and Howard streets, around 9:20 a.m., AC Transit spokesman Clarence Johnson said.
The California Highway Patrol was able to track the bus with a GPS system onboard and officers stopped the bus around 11:30 a.m.
on state Highway 120 near Oakdale, which is east of Manteca, Johnson said.
The person driving the stolen bus was arrested, he said.
Johnson said there were no reports of damage to bus.
The driver appears to have had knowledge of AC Transit buses and how to operate them, Johnson said.