A Gold Coast toddler who was taken from his Gold Coast home by his grandfather yesterday afternoon has been found safe and well.

Police had issued an amber alert to seek urgent public assistance to help find a two-year-old.

The boy was found at Coolangatta just after 9:00am by a member of the public who sighted the four-wheel drive which had been the subject of a public appeal.

The boy had been listening to music in the car with his 43-year-old grandfather at his home in Mudgeeraba when his mother noticed him missing about 4:00pm.

His mother said the grandfather was playing with her children for about three hours yesterday before taking her son for a drive.

"We didn't have a suspicion that he would take him overnight, we just thought he would take him to the park in the afternoon," the mother said.

"So we left it two hours and he didn't come home by dark so we called the police."

The mother said said she had been worried for the welfare of her son.

"It didn't really hit me until the six-hour point when I realised he wasn't coming home," she said.

"I then started thinking of the worst and we've looked everywhere that we thought we could find him.

"I just want my baby home safe."

The grandfather had not contacted family or friends since leaving the residence and police hold serious concerns for the child's safety as the grandfather is believed to have a medical condition.

An Amber Alert is issued by police for time critical situations to alert the public to help find an abducted child or high-risk missing child.