Charleston police said Ben Brengle found the body of his 2-year-old yellow Labrador retriever mix named Bella early Sunday.
Her body was just blocks from a North Charleston Lowe's home improvement store where she and Brengle's truck were stolen days before Christmas.
He had offered a $10,000 reward for her safe return.
Brengle now plans to hold a service for Bella at Sullivan's Island.
It's not clear how Bella died.
A man is in custody for the truck theft. He has not been charged in connection with the dog's death.
Richard Rawlings Jr., 37, was arrested Thursday and charged with possession of a stolen motor vehicle, the Post & Courier reported.
The Associated Press contributed to this report.