Joan Holland was with her pet dog Bella on their usual tea-time walk when she says a savage Staffordshire bull terrier set upon the 18-month-old Jack Russell before turning on her.
Police are now investigating the attack in Davison Drive, Hartlepo
ol.
Grandmother of two Joan, 50, said: "I have never been more terrified in my whole life. It was awful.
"It attacked my Jack Russell and when I tried to stop it the dog turned and clamped onto my arm. I couldn't get it off.
"Now I'm scared to take my dog for a walk. I don't know what we will do because who is to say it won't happen again."
The attack happened just yards away from Joan's home at around 5pm on Monday night.
It came to an end when a neighbour managed to help scare the dog away before helping Joan and Bella into his house.
Joan then went to the University Hospital of Hartlepool to have several puncture wounds on her right arm treated.
She was also given a course of antibiotics and a tetanus jab in case of any infection caused by the bite.
Joan, who has two grown-up sons, said: "I have never been bitten before by a dog and I had no idea what to do. The dog was four times bigger than Bella.
"Luckily, a man I only know to look at helped me and rushed us into his house. If he hadn't, God knows what would have happened."
Bella is said to be recovering well with scratches and a puncture wound to her stomach.
Joan, who works at Chambers Chemist in Northgate on the Headland, says she has found it difficult to work since the incident as she finds it difficult to move her hand.
A Cleveland Police spokeswoman said: "We can confirm we are investigating a reported attack by a dog.
"If anyone has any information that may help trace the dog they are asked to contact the police."
People can ring Hartlepool Police on (01642) 302126.