The children, ages 5 to 12, live with their mother and stepfather full-time, who left them at home to go grocery shopping Saturday night. When the mother and stepfather returned, the children were gone, along with their belongings.
All seven children were found at the home of Xa Yang in Sacramento, about 170 miles north of Fresno.
"The children were unharmed and were all in good spirits," a Fresno Police Department spokesman said Friday.
Police said the children were thought to have been with Yang since Saturday, but police did not know where he lived.
Yang has been allowed to keep the children while police conduct an investigation into whether there was a violation of either parent's custodial rights.
"Fresno and Sacramento PD will investigate further to determine if a crime was committed," the FPD spokesman said.