The incident took place at a temple fair in Hongtong County in China's Shanxi Province, where hundreds had gathered to watch the show.
A grainy video shows the crowd dispersing in confusion as the tiger charges.
The two children who were attacked by the tiger were discharged after receiving treatment from a local hospital, according to an official from the government of Hongtong County, the South China Morning Post (SCMP) reported. However, the official did not give any further details on how or why the tiger suddenly broke out of its cage.
An anonymous local policeman told SCMP that the tiger was captured minutes after fleeing and locked back in its cage. He also said that the village government will investigate the incident, but refused to give any additional details.