The grandmother, 47, watched her partner, Shane Alan Hartley, 35, abuse the toddler at his home in Adelaide, Australia.
A court heard how the toddler now reacted violently to nappy changes, and couldn’t stand to be in a room with men.
Judge Liesl Chapman described the crime as “unspeakable”, Adelaide Now reported.
The woman, who cannot be named for legal reasons, was jailed for four years and four months today.
Hartley will now serve a minimum of 10 years and two months in jail for the abuse, as well as the distribution of child porn circulated sent to almost 100 paedophiles around the world.
Judge Chapman asked: “Who could have thought a grandmother could let those things be done to her grandchildren?' Judge Chapman asked.
”Yours was the grossest abuse of trust that can be imagined.”
Chapman said the toddler was abused so badly that she “wakes screaming with night terrors, has a violent reaction to nappy changes (and) refuses to enter a room that males are in.”
The pair reportedly met last year via social media, where Hartley told the woman he was sexually obsessed with little girls.
He asked for explicit photos of the woman's grandchildren, which she agreed to send.
The court heard how the grandmother took the child to Hartley's house in a northern suburb of Adelaide in August 2017.
Judge Chapman said it was premeditated as the grandmother willingly took the child to Hartley, knowing what was going to happen.
Chapman said the parents were not to blame as they were entitled to place their trust in the biological grandmother of the child.
Hartley was arrested on August 23, 2017, and police found hundreds of videos and pictures of child exploitation material.
They also found evidence he had been posing as a teenage boy in a bid to get naked photos from teenage girls.
He had also been in contact with a New South Wales mother who sent over 100 pictures of her nine-year-old daughter over a two-month period.
Hartley, who was already on the sex offenders' register, was declared a serious repeat offender.
In the past he had been sentenced to more than 13 years in jail, but was released a year early after he testified against a paedophile from Canada.
The grandmother will eligible for parole in December 2021.
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