Lebanon police said Benjamin Dillon, 37, broke into an apartment and threatened to take the girl, claiming it was his daughter, the television station reported.
"I was sound asleep in my bedroom and this guy came kicking in and said, 'You have my daughter,'" Patty Roth, the girl's grandmother, told WXIN. "I was nervous, very nervous. I was shaking so bad."
Roth's husband was able to get Dillon out of the apartment. According to a police report, Dillon threatened several officers and had to be shocked with a Taser.
Dillon was charged with burglary, resisting law enforcement and intimidation, authorities said.
Dillon told WTHR the incident was "a big misunderstanding."
"I know I physically fought with police officers but I never physically broke into the place," Dillon told the television station."I was under the impression that maybe my daughter might be over there in that apartment complex.
"I am truly sorry for coming to your apartment door, for waking you up." Dillon told WTHR. "I know I didn't kick you door in. It's a mistake."