The crash was reported at around 1:30 p.m. Thursday in the 1700 block of W. 83rd Street, according to the Los Angeles Fire Department.
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Los Angeles police say a driver suspected of DUI was exiting a liquor store parking lot and struck another vehicle that was traveling southbound on Western Avenue. The crash sent one of the vehicles toward the woman and her child, who were at the bus stop waiting for relatives.
The woman, child and the driver accused of causing the crash were hospitalized with critical injuries. The woman later died at the hospital.
"I feel sad. My heart is crushed ... for my niece and cousin," a family member at the scene said. "All I want is for the police to do their job the way they're supposed to."
LAPD says the driver who allegedly caused the crash was taken into custody on suspicion of DUI.
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The victims' family says the child, who remains in critical condition, is 9 years old. Authorities initially said she was an infant.