"I was so confused," says Julia Super, a seven-year-old girl who found the doll.
For the past year a local church in Chambersburg had to find a replacement doll after the original one was stolen.
"I'm sure people think it's a prank, but bottom line is it's a crime, it's a theft," says Chief David Arnold, from the Chambersburg Police Department.
After a year of investigating it took two little girls with Christmas spirit, who never gave up hope, to spot the missing doll.
"Well I thought that it was a statue at first and a couple of days after that I saw it again," says Super.
"There's a Civil War soldier and the Jesus figure was in the arms of the soldier," says Chief Arnold.
"My dad took me out here and showed me that it was in the arms of the soldier so I ran across and got it," says Maddie Gingrich, another little girl who found the baby Jesus doll.
The replacement doll was also stolen but church officials never reported it to police. That doll also turned up in the arms of another statue in Chambersburg.
"We were told on Sunday afternoon that the other baby Jesus was then missing," says Roni Gingrich, a church member. "Tuesday morning I received an email that the baby Jesus had been returned."
The baby Jesus doll has not been put back in the nativity scene. Church officials want to come up with a strategy to keep the doll safe before putting it back
"We had talked about chicken wire but we don't want to take away from the beauty of the nativity scene. We're talking about glass," says Gingrich.
Security cameras were placed in the square six months ago. Chambersburg police will be reviewing the tapes hoping to catch the thief.