The SUV was taken from a home on Hulbert near Pinedale. The kids were found minutes later near the corner of Herndon and Fruit.
Police are still searching for the man who stole the car.
The children are safe with their family. Family members told Action News the SUV the two children were in was stolen from right in front of the family's house.
Just before 10 o'clock Friday evening, the kids -- a four and six year little boy and girl -- were brought back to the home to be reunited with their parents.
The family was in the middle of saying their 'good-byes' following a Thanksgiving celebration Friday evening. Fresno police said the father had buckled his two kids into the SUV and let it warm up while he went inside to get a third child.
Several family members were standing outside the home, within eye sight of the SUV, when they saw it speed away. Family members said they did not see the thief walk up to, or get into the SUV before he took it.
While the family frantically tried to follow the SUV police said the crook must have noticed the kids in the back seat and dropped them off at Herndon and Fruit. That's about a mile and half from where the SUV was stolen.
"An individual in the neighborhood had the two children in their possession, and had located the two children standing on the side of the street," said Fresno Police Lt. Jon Papaleo.
Family members were too upset about what happened to talk with Action News on camera, but they said they're just grateful the kids are safe.
In the meantime, Fresno police said extra officers are out in the neighborhood because that car thief is still on the loose.
The stolen car is a champagne-colored 2006 Nissan Armada with a California license plate of 5SXW056.