The quick action of staff in a Sydney McDonald's may have saved a toddler's life.

A dramatic video shows how the panicked parents, only identified as Tevita and Glory, rush to the counter and alert staff after their 14-months-old daughter Nevaeh choked on a chip and had stopped breathing.

Immediately a number of staff members and customers jump to their aid and called emergency services at the same time.

While Nevaeh is lying on the counter, people are desperately pounding on her back in an effort to dislodge the chip.

Restaurant manager James Hatcher told Channel Nine's A Current Affair show that when he started trying to dislodge the chip, Nevaeh was already turning blue.

He said the girl's distraught mum was shouting: 'Save my baby, she's choking, she's not breathing.'

Emergency staff gave instructions over the phone to some of the McDonald's staff members.

Customer Naomi Donovan said: "At the time I grabbed her, she was limp, really limp, going blue, she wasn't breathing. She's in my hands; I'm staring at her parents screaming and crying."

After three minutes, the toddler started breathing again. Hospital staff said the girl had suffered a seizure which had caused her to choke. She was kept in hospital overnight but released the following day.

Restaurant staff received an award from McDonald's and was praised by the New South Wales ambulance service.

- © Fairfax NZ News