Helen Beard, 44, of Worksop, England, was by a pool in the American resort of Orlando when she saw the child dangling through a railing of the fourth-four balcony.
The Briton, of Worksop, Nottinghamshire, ran to a spot under 16-month-old Jah-Nea Myles, before she fell, striking the balcony below on her way down.
Beard broke the US child’s fall, before she slipped from her arms and hit the ground, according to police reports.
The drama unfolded at the Econo Lodge Inn & Suites shortly after 11pm on Wednesday.
Jah-Nea was taken to a local hospital. The toddler’s mother, Helena Myles, 20, told Reuters: “She’s perfectly fine. Not a scratch on her body.
“I’m thanking the Lord above right now for saving my child’s life.
“I’m also thanking that lady because she was an angel sent from heaven,” said Myles.
Myles said she left the youngster in the care of friends, who did not notice she left room until they heard screaming.
“I’m not upset with anyone. I’ve had it out with my friends. But other than that, I’m thanking God right now that my child’s here,” Myles added.