NSW Ambulance confirmed they were called to the scene shortly after 2.30pm, where they found the boy, believed to be aged 11.
He was trapped under the car “for some time” and sustained head and leg injuries.
Police, paramedics and fire crews worked to free the boy before he was taken by ambulance to Westmead Children’s Hospital.
He remained in the hospital in a stable condition on Friday evening.
Footage from the scene showed the accident happened out the front of a childcare centre.
It appeared a black Nissan SUV was leaving the centre from its driveway, which crosses the footpath, when the boy was struck.
Pieces of wood were placed under the vehicle to raise it from the ground so the boy could be freed.
A helicopter from Careflight landed near the accident scene, with doctors assisting in the boy’s treatment.
Ellen Keir, who lives nearby, said she left her house when she saw the road blocked off and realised there had been an accident.
“It was crazy,” she said.
“I’ve got three kids of my own and it’s one thing I hate about living on this street, actually.”
The incident is being investigated by NSW Police.