The company says the ornamental flowers sewn on the small, pink dresses can easily come off, posing a safety hazard.
The dress in question is described as the Newberry, two-piece floral-applique dress and bolero set.
The dress set was sold in little girls sizes: 12 months, 18 months and 24 months between December 2011 and this month.
The Sears retail item number is 44835 and the catalogue number is 55124.
Sears says customers who have the dress should stop children from wearing it and return the dress to their nearest Sears outlet.
Sears Canada has received no reports of injuries to date.