Politicians have called for a temporary ban on the giant inflatables as an investigation is launched into the horror on Gorleston Beach in Great Yarmouth.
Horrified eye-witnesses said the young girl was thrown into the air and crashed onto the ground before being given CPR at the scene.
The girl was rushed to hospital following the incident at around 11.15am yesterday morning but was pronounced dead shortly after arrival.
Kayla-Ann Weaver, who was sitting only metres away from the accident, said: "I was right next to … it behind the barrier and I just heard a big bang and I turn around and a little girl in pink flew up and back down.
"They did CPR on her straight away. She looked a lot younger than four years old. It is terrible."
The beach was packed with hundreds of families enjoying the sunny weekend with temperatures reaching around 27C in the area.
Members of the public and paramedics tried desperately to resuscitate the girl at the scene.
Karen Sell, who was leaving the beach at the time, said: "I was walking away from the beach and I heard the most enormous bang and straight away turned round.
"I was at the top of the stairs near the cliff that overlooks the beach and people were all there and everyone was in shock.
"I spoke to someone who described how the girl was just thrown about 20ft into the air and landed on the floor
"It was just terrible. A man was giving the girl CPR for quite a while before they took her hospital.
"The bouncy castle was not like one I have seen before — it was like a trampoline so you could jump a lot higher on it than a normal one. It is such a sad situation."
Witness Kara Longshaw added: "A bouncy castle exploded at the beach and the child on it was catapulted about 20ft into the air."
Robert Halfon, the Conservative MP for Harlow, Essex – where seven-year-old Summer Grant was killed when a bouncy castle blew free from its moorings in 2016 – wants politicians to consider a temporary ban.
He tweeted on Sunday evening: "After two horrific tragedies, Government need to look at update of regulations and inspection regime and consider a temporary ban on bouncy castles in public areas until we can be sure that they are safe."
Cherish every moment you never know what could happen in a blink of an eye.
The inflatable was part of the Bounce About play area whose website showed a large square castle as well as an inflatable slide.
Text on the family-run business's site reads: "Defy gravity and Bounce About on our trampolines or dare to climb the massive inflatable slide, dare to ride the rodeo bull or put the kids to play on the massive inflatable funcity and relax in our deckchairs while the children play.”
A Norfolk Police spokesman said: "Police can confirm a child has sadly died following an incident in Gorleston on Sunday 1 July 2018.
"Officers were called to Lower Esplanade around 11.15am following reports a child had been thrown from a bouncy castle.
"The young girl was taken to the James Paget Hospital; however sadly died.
"Next of kin have been informed and are being supported by specialist officers.
"A joint investigation between the Health and Safety Executive (HSE), local authority and police has been launched to establish the circumstances surrounding the incident and a police cordon has been put in place at the scene whilst enquiries continue."
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