NSW Police said the 33-year-old woman and girls, aged four and five, were asleep and sharing a bed in their Goonellabah home in Lismore on Tuesday night and into Wednesday.
“About 4am the woman was woken by a man sitting on her bed sexually touching her,” police allege.
“She screamed and the man ran from the premises.”
A 19-year-old man was arrested yesterday afternoon at a home one block away from the scene.
He was taken to Lismore police station and charged with aggravated break and enter, commit serious indictable offence (sexual touching).
If convicted, the offence carries a maximum penalty of 20 years behind bars.
The man was refused bail by police and is due to face Lismore Local Court today.
The two girls were not harmed during the incident.