The youngster, dressed in pink snow gear, is seen dancing to a marching band a few feet from the sidewalk when the car allegedly driven by Darrell Brooks passes inches behind her.
The crowd erupts in screams and gasps as the car continues down the route before striking dozens of people, killing five and wounding 48.
The now-viral video captures the terror that overtook what was supposed to be a joyous holiday occasion in the town near Milwaukee.
Mr Brooks, 39, was arrested shortly after the crash and is set to appear in court on five counts of first-degree intentional homicide on Tuesday afternoon.
Police said Mr Brooks - a rapper under the name MathBoi Fly with a long criminal record dating back to 1999 - had been fleeing from a “domestic dispute” when he drove onto the parade route.
At an emotional press conference on Monday, Waukesha Police Chief Daniel Thompson read out the names of those who had died: Virginia Sorenson, 79; LeAnna Owen, 71; Tamara Durand, 52; Jane Kulich, 52; and Wilhelm Hospel, 81.
An additional 48 people were injured, including at least 18 children.
Grandmother Tricia Tucker described how the attack unfolded in an interview with The Independent, recalling how she instinctively pulled children to safety.
“I’m just grabbing the kids to get them off the street,” Ms Tucker said.
“My oldest son, he saw people get hit. He saw people run over ... [and] runs to help.”
She choked up as she described “literally grabbing kids by their jackets, throwing them into my building – because the doors, when they close, they lock.
“I’m screaming for everybody who can hear me to run into my place.”
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