Police said Mayra Alejandra Flores, 26, attempted to lure the child with candy as she played outside her home at around 9 p.m.
The child was with her teenage sister who brought the girl inside, police said.
Flores allegedly followed the two girls and forced her way into their home, where she attempted to forcibly take the toddler from her mother's arms, according to police.
Police said the child's mother fought her off and Flores ran away. Officers found her at Tillman and Martin avenues at around 9:30 p.m. and arrested her.
She was booked into Santa Clara County Jail on suspicion of attempted kidnapping and burglary with bail set at $200,000.
No one was injured in the incident.