The 4-year-old boy was struck by a car outside Dunnes Stores.
The boy was taken to Letterkenny General Hospital for assessment.
It is believed the youngster may have suffered a head injury among other injuries. His condition is not life-threatening.
The circumstances of the accident at the new Dunnes remain unclear.
However a Garda investigation has been launched into the incident. Officers at the town’s Garda station are appealing for any witnesses to the incident to contact them.
Traffic in the area was disrupted for a time whilst an ambulance attended the scene.
The boy is understood to be from the Letterkenny area.