The incident happened near Sawmills School Road around 7 a.m.
According to the girl's grandmother, while the toddler's father was making the girl breakfast, she pulled a loaded handgun off a computer table. When she sat down with it, it fired. Investigators confirmed that story.
SLIDESHOW: 2-year-old girl wounded with handgun
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"Pray just pray for her. And if for gods sakes you got a gun at home lock it up. Don't let this happen to your family," said family member, Norlene Wilson.
A medical helicopter from Carolinas Medical Center was sent to the scene. The wounded child and the the child's mother flew to the hospital, but it is believed the child was only grazed and not hit directly in the chest. Officials said the girl's injuries are not life-threatening, but said she will have to undergo surgery.
The child's identity has not been released. Officials said the toddler's second birthday was Wednesday.
During the investigation, Caldwell County sheriff's deputies confiscated all of the firearms in the home. The girl's father has not been charged, but officials said charges are pending.