The late Jack Layton's daughter Sarah gave birth to her second child early Thursday, a baby girl named Solace.

Layton's granddaughter was born at 2:15 a.m. in Toronto and weighed in at 9.4 pounds.

Jack Layton's daughter Sarah gave birth to Solace early Thursday morning. (Olivia Chow) Olivia Chow, Layton's wife and a Toronto MP, was there to witness the happy occasion of Solace Huxley Layton Campbell's birth.

"It was magical witnessing the birth of the baby," Chow told CBC News. "Solace is beautiful and full of life. I have no doubt she will grow up intelligent and creative."

Sarah's husband, Hugh Campbell, and her mother, Sally, Layton's first wife, were also in the room when the baby was born.

The couple knew they were having a girl but hadn't told anyone the name until after Solace was born.

"It is a beautiful name, it is unique," Chow said. The Toronto MP said it brings a feeling of comfort and calm and reminds her of the sun.

Layton died of cancer in August, shortly after leading the NDP to its greatest election victory in its history in May.

Layton was known to be a proud and adoring grandfather to Solace's older sister, Beatrice. The two-year-old is very excited about the newest member of her family, said Chow.

Her late husband knew his daughter was pregnant before he died and was also excited at the prospect, said Chow. Last night as the family gathered at the hospital waiting for labour to progress, they looked at photos of Layton on Chow's BlackBerry and reminisced. One of the photos was of Layton holding Beatrice right after she was born.

"It was really joyous, you can't get sad when a baby is coming," said Chow. She said she has a bottle of champagne on standby for when more family members gather to celebrate once Solace is out of the hospital.

Layton remembered as "Grandpa Jack"

Late NDP Leader Jack Layton, right, holds his first granddaughter Beatrice as his daughter Sarah, left, looks on during the 2011 federal election campaign. Sarah Layton gave birth to her second child Thursday. (Jacques Boissinot/Canadian Press) In the eulogy delivered by Sarah Layton at her father's funeral in Toronto, she talked about how he would take Beatrice on long walks and how he always made time for family.

She told the story of how she called her father "Grandpa Jack" on election night in 2008 as her way of telling him that he would soon become a grandfather for the first time.

"You were equally elated to know that another one was on the way," she said at the Aug. 27 funeral.

"You've been a city councillor, the deputy mayor of Toronto, the honourable member for Toronto-Danforth, the leader of her majesty's loyal Opposition," she said, "But most of all, I will remember you as Grandpa Jack — fun-loving, smiling, with all the time in the world, having a tea party on the floor with Beatrice."

Chow said before the Christmas holidays that she was looking forward to the birth of the second grandchild in the family and that the excitement would help buffer some of the sadness that can be experienced during the first holidays after the loss of a loved one.