WXIA-TV reports that the child was left dangling from the bus before it stopped 41 feet down the road.
Officials say the accident happened Friday afternoon, after 5-year-old Alexis Luvell finished classes at Auburn Elementary School.
Alexis' grandmother, Brenda McCormick, said she witnessed the ordeal. McCormick said she was screaming "Stop! Stop!" and the bus driver stopped the bus after people were honking at her.
Amy Matthews said she was driving behind the bus and helped flag down the driver. Matthews said she was afraid the little girl was going to fall under the wheels of the bus.
School system officials say they're investigating the incident.