Acid from the button battery leaked and burnt through the septum of Kelsie Heath, from, Leicestershire.
She was aged three and in foster care when she put the battery up her nose but did not tell her carer.
Her adoptive mother is now raising awareness to the dangers small batteries can pose.
Her mum Kerrie said the battery had been there for months when brown discharge started coming out of Kelsie's nose.
At the time the youngster was living with her foster mother before Kerrie later adopted her.
Kelsie's foster carer took her to see a doctor, who said it was a sinus infection and gave her antibiotics, but she quickly became unwell.
"Her hearing was affected, her weight went down and she lost her appetite," Kerrie said.
After several trips to hospital, the battery was picked up by X-ray and Kelsie had to have an operation.
"It had burned through her septum," Kerrie said.
"It has caused her nose to collapse. She has no septum at all and she has a hole at the top of her nose the size of a 50p piece, which needs reconstructive surgery as she gets bigger."
Kerrie urged parents to check the screws fixing batteries in place at the back of toys are secure, to prevent this happening to another child.
"They seem so little, you can't imagine the damage it can cause. Kelsie is living proof that the damage can be quite significant and it is going to affect her until she is an adult, with several surgeries planned."
Kelsie said: "Do not put a battery up your nose, otherwise you have to go to hospital."
Leicester Royal Infirmary said it treats one patient a week for injuries caused by button batteries, which are often found in children's toys.
A seven-year-old girl is facing ongoing reconstructive surgery after a battery from a child's toy was stuck up her nose for five months.