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The disappearances of missing mother Bennylyn Burke and her two-year-old daughter Jellica are being treated as a murder investigation, Scottish Police said.
Ms Burke, 25, was reported missing from her home in Gloucestershire on March 1 along with two children, including Jellica.
A 50-year-old man was arrested at a property on Troon Avenue, Dundee, on Friday.
He has now been charged in connection with the deaths and will appear in Dundee Sheriff’s Court on Monday.
Officers are still searching for their bodies.
Police said the second child was found and is being held.
Detective Superintendent Graeme Mackie of Scotland’s Police Chief Investigation Team said: “This is a complex investigation involving both local officers in Dundee and specialist resources from across the Scottish Police.
“Bennylyn’s closest family members have been updated on the arrest and have the support of Avon colleagues and the Somerset Police.
“Our thoughts are with his family and friends at this difficult time.
“There will be an increased police presence in the area for a considerable period of time and I would like to thank the local community for their cooperation.
“Anyone with concerns or information can speak to a local officer or call the Scottish Police on 101, citing Incident 1434 of March 5, 2021.”