South Yorkshire Police were alerted to the incident in Parson Cross at around 5.15pm yesterday.
A member of the public filmed a woman using reins to drag a young girl across a road and along a pavement on a street in Parson Cross.
The girl was face down on the ground at the time.
The video was shared on Facebook and authorities were informed.
A 31-year-old woman and 39-year-old man were both arrested on suspicion of cruelty and child neglect.
The man was also arrested on suspicion of assault and public order offences.
South Yorkshire Police said: “We received a call yesterday for reports of concern for a child in Sheffield.“It was reported that a woman was pulling a child along the street.“Officers attended and arrested a 31 year-old woman on suspicion of cruelty and neglect to children.“A 39 year-old man was arrested on suspicion of assault, suspicion of cruelty and neglect to children and public order offences.
“They both remain in police custody.“The child was uninjured during the incident and is safe and well.”