The image shows the young girl posing with the sectarian slogan on her head in face paints.
It's thought the picture was taken during twelfth of July celebrations in the country.
It's been widely condemned and now the police have opened an investigation.
A spokesman for The Police Service of Northern Ireland said enquiries were ongoing.
He told Premier: "Police have received a report, enquiries will be carried out to establish if any offences have been committed."
Police Service of Northern Ireland PSNI main