The seven-year-old was spotted leaving school in the pink top which featured Michelle as Glinda the Good Witch, her character in Oz The Great and Powerful.
The youngster, whose father is the late actor Heath Ledger, is said to be a big fan of the her mother's role in the film and is planning to dress up as Glinda for Halloween.
"Matilda knows a lot about Glinda the Good Witch," said Michelle in an interview with The New Yorker. "A lot about who that is, what that was."
"She would go up to people in the park and say, 'My mommy is Glinda the Good Witch in Oz," she added. "'There's two bad ones and only one good one and that's my mom.'"
Mum-of-one Michelle is regularly seen shopping or playing in the park with Matilda.
The Brokeback Mountain actress, who was in a relationship with Heath for three years, has previously spoken about how she feels connected to the actor through their daughter.
"Every time I really miss him and wonder where he's gone, I just look at her," said Michelle.