Rangers are searching for the wild dog after the incident at K'gari, formerly known as Fraser Island, in the state's southeast.
A family was preparing to leave Lake McKenzie on the island on Thursday afternoon when the father spotted a dingo lingering near the car.
He told his family to move to the other side of the vehicle hoping the dingo would leave the area.
However, the animal ran over and bit the toddler on the thigh before the man chased it away.
The boy suffered two puncture wounds.
The family drove to nearby Eurong to report the encounter to Queensland Parks and Wildlife Service rangers.
The toddler's injuries were then treated at nearby Kingfisher Resort.
Rangers are working to identify the untagged female dingo.
"Rangers will continue patrols in the Lake McKenzie (Boorangoora) area," the Department of Environment, Science and Innovation said in a statement.
It is the latest in a spate of dingo-related incidents on the island.
The most recent occurred when a 10-year-old boy was bitten on the back of his leg after a dingo chased him out of the water in April.
It marked the 10th incident in a matter of months.
Visitors to K'gari are reminded to remain vigilant, keep children at arm's length and always carry a stick in case of a dingo encounter.
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