In the disturbing footage, first a young boy toddles across a play area towards a chained up prisoner lying in the dirt.
He stops next to a black-masked terrorist who cocks a gun, and hands it to him, Daily Star reported.
Without hesitation, the boy points the pistol at the prisoner - firing a shot, and killing him.
The second segment of the video shows a child fighter - who appears around 7-years-old - giving a speech to the camera.
Awful footage then shows the older boy cutting the helpless man's throat and beheading him.
Child soldiers are often used by ISIS as part of their so-called Caliphate cubs wing which indoctrinates youths into their monstrous ranks.