Tips for dealing with young kids and "traumatic" experiences?

So, a little background first. I have a 3 1/2 year old girl who absolutely loves animals! We have 4 dogs at our house, two of which she doesn't play with because they are my hunting dogs and stay outside, and they tend to knock her down, but she will go to the fence and pet them and talk to them. The 2 dogs inside are a 5 year old shih tzu, and we just got a great dane and she is 8 wks old. My mother in law has several dogs, and my mom had a rat terrier that was three or four. She got him about a year and a half ago from an elderly couple who couldn't care for him. Instantly my daughter fell in love with this dog, and him with her, he would whine and get super excited when my mom would say my daughter was coming. She would sometimes beg to go to nana's house just to see Ace. Since she was 2 months old she goes to my moms on thursdays because my mom wants to spend time with her. Well this past thursday at about 9am my mom and my daughter were outside letting ace use the bathroom and from across their backyard( it's surrounded on 3 sides by a piece of woods about 20 acres)a coyote runs out and up to the dog and wrestles him to the ground and then picks him up behind the head and runs back into the woods with the dog still hollering and yelping, all while my mom and daughter watch in horror from 30 feet away! My mom tried screaming to see if he would drop him, but no luck. She didnt want to go after him because my girl would have followed. My mom calls me pretty hysterical at this point, as ace was pretty much a member of the family, and says something got ace, and in the background i can hear my daughter freaking out too. so i haul arse there to see about her and she is crying and asking to go home to see her puppies. Well now she wont go anywhere in our house by herself, and on 2 seperate occasions(the only two times she had to come outside after dark) when we were leaving somewhere after dark she really freaks, almost to the point of hyper-ventilating. Shes never been scared of the dark or anything like that before, and when i have to bring our puppy out at night she begs me not to go and when I explain i have to she tells me to not let anything get the puppy. I understand this was very troubling for her to witness, im just wondering how long its going to take before she somewhat gets over it, or what, if anything, i can do to help her! Its pretty hard knowing what she saw , and seeing her be so scared! I know this is ridiculously long, but thanks in advance for tips!

This was ace: