The boy, abducted from Manor Road, Arleston, Telford, at about 3pm is safe, West Mercia Police said.
But two women have been arrrested on suspicion of child abduction.
It was reported that the child may be in the company of a white woman with dyed reddish brown hair, who is about 5ft 5in tall.
Neighbours said police had voiced fears that a “stranger” had come in off the street and snatched the child.
A police spokesman said earlier that a woman, between 30 and 40, at the centre of the probe had a lump under her nose and a gap between her front teeth.
She was last seen wearing an army green zip-up jacket and a small black bag over her shoulder.”
Police earlier carried out door-to-door in Manor Road this afternoon before finding the baby.