The shocking video shows the bloodied girl thrown into the middle of a crowd where she is viciously beaten before being set alight.
The helpless girl is heard screaming and writhing in pain as her body goes up in flames and she dies.
Police officers said they tried to intervene but were blocked by onlookers.
The four-minute clip was viewed thousands of times on YouTube before being removed.
According to news website Tiempo the girl has not been named because the National Civil Police fear further tensions in the village of Rio Bravo, 77 miles west of capital Guatemala City.