Haywood County Sheriff's Office said Alazay Shelby Rose, 12, and Kinlley Maelena Stepp, 3, are missing and believed to be in danger.
The two children are believed to be with Jacob Grant Aaron Stepp, 46. He's described as a 6-foot man, weighing around 200 pounds with a tattoo on both of his shoulders.
Investigators said both children were taken from a home in Waynesville. They're thought to be in the area of Cherokee Tribal, North Carolina.
Stepp was last seen driving a 2016 white Dodge Challenger with black racing stripes and tag number KMC5951.