Gog the dog, from Leicester, was known for wearing clothes and being wheeled around in a buggy by its owner Monti Shortt.
Dozens of people responded to a social media campaign and helped hand out leaflets to help find the dog.
Police said someone walked off with the buggy when Ms Shortt briefly popped into the Haymarket Shopping Centre.
Mrs Shortt told BBC News that Gog had clearly been well looked after since she was taken nearly three weeks ago in Leicester.
"It hasn't quite sunk in yet," she said about her dog's return, adding that a man had called her saying the dog was at his home.
Ms Shortt, 69, who has cancer, said she wanted to get her pet back urgently because Gog needed surgery on her knees.
The pet was found by police after they "attended an address in the city" and the force is still investigating the incident.
"Thank you to everyone who gave information and shared the appeal for her safe return," a Leicestershire Police spokesman said.
A Yorkshire terrier that was taken from its elderly owner who has cancer has been found.