Parents of toddler shocked to discover he was found in another suburb at 2am

The parents of a Sydney toddler who went missing from their family home in the early hours of the morning have thanked everyone who helped in keeping Khai safe.

The two-year-old was found far from home, with the toddler spotted all alone on MacDonald Street in Ramsgate about 2am on Tuesday.

"He was crying, he was screaming, his feet were really sore," Khai's rescuer told 9News.

A good Samaritan alerted police about 2.10am.

They were quick to respond and posted a photo of the toddler on social media.

Khai's childcare teacher recognised him and called his mum, Victoria Hadrovic, in Sans Souci at 7am.

Hadrovic had just woken up and didn't understand what the teacher meant by "Khai's been found", having not realised he was missing because the alarm on the family home failed to go off.

Due to a challenging day, thanks to a power outage - which was why the alarm didn't work - Hadrovic had a late night doing "the washing [and] the cleaning".

Her husband tucked their five kids into bed instead, a change in routine for young Khai, who snuck out the front door about 2am.

"He would have woken up trying to find me because it was a very challenging day," Hadrovic told 9News.

Now reunited with Khai, Hadrovic wants to thank everyone involved.

"Thank you so much, thank you for bringing this closure to our household," she said.