The older girl escaped with just a few scrapes, according to a report on BuzzFeed.
A spokesperson for the South Glens Falls Police said the bouncy castle was found in a field behind a nearby school - but not before it had risen to a whopping 50ft.
"It was like a horror movie," witness Taylor Seymour told the Post-Star. "It just kept going up and up. It cleared our building and the trees."
Another woman added: "My older daughters witnessed it and said it was just horrible. A big gust of wind just blew it right off the ground with the kids in it. It's just sickening."
The bouncy castle is reported to have been a Little Tikes Bounce House, which was owned by a local resident.
More on Parentdish: Three children injured as bouncy castle is blown into the air