Cantrell Osborne received what she thought were the cremated remains of her daughter, who was stillborn.
She was given the ashes by the Pyke Funeral Home in Henryville in southeast Indiana.
However, police have arrested the home's owners, charging them with theft and insurance fraud.
"I had an eerie feeling about it from the beginning, but I took her ashes, paid him my money and out the door," said Osborne. "We were in there for less than like 3 minutes."
The funeral home may have also given other families the wrong remains.
"We've actually been inundated with phone calls and what we want to tell people is, just have a little patience - we're still trying to investigate," said Indiana State Police Sergeant Jerry Goodin. "This is still a full-blown investigation."
Police say the investigation may lead to additional charges against the funeral home's owners.