"The parents awoke with the toddler crying and heard the crying getting further away from the campervan", Fraser Island paramedic Ben Du Toit told local media.
The Environment Department believed two dingoes entered a camper trailer, with rangers now attempting to identify them.
The child had been dragged some distance from the van before his father ran after him and fought off the dingo to retrieve the child.
The boy's parents - who were camping with the boy and his four-year-old sister at Eurong Beach - woke to the sound of their son's cries, which were "becoming more distant", according to the Royal Automobile Club of Queensland (RACQ) LifeFlight Rescue.
The toddler suffered two deep cuts to the top of his neck and minor cuts to his scalp in the incident yesterday.
ABC News reports that he is now being treated in hospital and is in a stable condition.
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In a statement to the Herald, the boy's parents, who have not been identified, said their son was "doing well" but would require further surgery. The baby's body was never found, creating a mystery that captivated Australians for years and was made into a book and a film with Meryl Streep and Sam Neill.
A toddler is in hospital with a fractured skull and cuts to his head and neck after a dingo dragged him from his bed on Queensland's Fraser Island.
Mr Du Toit warned visitors to Fraser Island to heed rangers' advice and stay away from dingoes.
In January, a 6-year-old boy survived an attack by a pack of wild dingoes, prompting an inquiry into dangers posed by the dingo population by the Queensland government.
Experts also believe dingoes may attack humans on rare occasions due to scarcity of food, especially during times of drought.
Perhaps the most famous example of a dingo attack took place in 1980, when Michael and Lindy Chamberlain were wrongly convicted in the death of their 9-week-old daughter after she vanished from their tent. But the girl's jacket was found three years later near a dingo den in the desert, exonerating her parents.