A relief teacher called the police because he suspected a six-year-old Muslim boy with Down's syndrome was a terrorist.
Police officers in Pearland, Texas launched an investigation into Mohammad Suleiman's family after the teacher relieving his class contacted the police.
The teacher, who was covering for a regular staff member at CJ Harris Elementary School, claimed the six-year-old kept repeating the words "Allah" and "boom" during class.
Mohammad's parents disputed the claim, saying their son "doesn't speak at all" and "has the mental capacity of a one-year-old".
"They claim that he's a terrorist," father Maher Suleiman told Fox26 News. "This is so stupid. It's discrimination actually. It's not implied discrimination; it's 100 percent discrimination."
Mr Suleiman said his family had suffered greatly as a result of the police investigation.
"The last three or four weeks have been the hardest of my life," he said. "My wife and kids were crying a few days ago and I told them everything is fine."
The region's Child Protective Services launched an investigation into the incident.