She was rushed to hospital after plummeting from the gondola ride but is in a stable condition with no serious injuries.
An unidentified 47-year-old man was treated and released from a hospital for a back injury sustained when he attempted to catch the falling girl.
As she began to drop, someone in the crowd that had gathered below her can be heard yelling, "We'll catch you honey!"
Another child was also in the vehicle, the sheriff's office said.
Matthew Howard Sr. was just leaving a NY amusement park Saturday evening with his family when he heard someone screaming for help. They found everything was in proper working order and all safety equipment was intact and operational at the time of the incident, the sheriff's office said. "I'm not going to let you fall", said Mr Howard.
The ride was stopped after the operator was told of a rider in distress, CBS reported. Authorities say the girl fell from the vehicle and struck a tree before landing in the crowd.More news: So, Donald Trump Pretty Much Admitted That Russians Hacked The Election
Employees at The Great Escape & Splashwater Kingdom in Queensbury treated the girl before emergency crews arrived, the sheriff's office said. The girl's neck initially appeared to be stuck in the gondola, but she was unable to untangle herself before dropping 25 feet.
A representative from the theme park said the female guest was caught by a group of guests and security personnel standing below. The Sky Ride has been cleared operation by the New York State Department of Labor, however it will remain closed while the park does an internal review.
The ride she fell from is called the Sky Ride and is a two-person, slow-moving gondola.
When asked whether the girl's evacuation from the ride had followed protocol, Wood did not specify but said that all rides have a "standard evacuation plan".
Officials who inspected the ride reported that there was no malfunction.