The 40-year-old comedian and activist was in India to perform his stand-up show for the Comedy Central Chuckles Festival in Mumbai, New Delhi and Bangalore.
While meeting residents in one of the country's many slums, Brand was completely oblivious to the fact that he had just had his phone stolen from his back pocket.
But a child who saw the whole thing happen quickly dashed after the thief and returned the item to Brand.
The actor tried to give the young boy some money for his efforts, but the Good Samaritan declined.
Brand posted the "amazing" incident on Instagram on Sunday.
An amazing incident happened to me in the slums in India... https://t.co/fecf2dPClH— Russell Brand (@rustyrockets) July 5, 2015
In the short video, Brand said: "In the mad free for all one of them nicked my phone, I didn't even notice it happen.
"Someone explained 'oh your phone's been nicked'.
"But then another kid brought it back. And I like went to try to give him money and stuff and he just looked at me like it meant nothing.
"That kid was living by a higher code."
Last week, Brand was in hot water after he made a comment about the silence for victims of the Tunisian attacks being "bullshit".
Since then, he has received a barrage of criticism, most recently from Jeremy Kyle, who slammed the comedian for trying to turn the "dreadful Tunisian massacre into his own political football".