Commissioner of Police R P Sharma said the incident took place at Saliasahi slum after the accused, identified as Ashok Sahu, sought help from the eight-year-old girl's parents to locate the house of a person in the slum.
"We had sent our daughter to show him the house. But she did not return. We thought she must be playing with friends," the victim's father said.
They, however, found her body near a bush in the slum.
The incident occurred barely one week after the death of a 14-year-old girl, who was allegedly set on fire by miscreants in Kendrapara district after she refused their sexual advances.