The man (name withheld) is 46 years old and married with four children and two grandchildren.
He was arrested, charged and detained on May 29 for allegedly sexually touching the girl at their family home at June Valley.
It is alleged the man on May 28 sexually touched the biological daughter of his brother, a 10 year old girl while pretending to get the girl to recite her mathematics times tables after school.
The accused appeared in court for the first time with his lawyer with a verbal bail application that was later granted by Magistrate Cosmos Bidar.
His lawyer asked the court to use its discretion and allow bail to the accused.
He has since been allowed out on a K500 bail by the court and returns to court in a month.
Meanwhile a man also accused of the sexual penetration of a child at the Wild life area in Port Moresby was allowed bail today after a verbal application.
The accused (name withheld) was charged for sexually penetrating a four year old toddler.
He was granted bail of K400 after having been in custody for some time.