The 28-year-old offender, an art and crafts teacher in a private school at the district headquarters town of Sambalpur, about 320 km from state capital Bhubaneswar, allegedly gave the students some drawing assignments and started watching an obscene video on his laptop.
After finishing her drawing, the girl went to show it to the teacher, who forced her to look at the video, police said.
He also touched her private parts and molested her.
The girl told her parents about the incident.
Based on a complaint by her parents, police arrested the teacher and seized his laptop. The accused has confessed to the crime.
Spotted: Virat Kohli, Anushka Sharma and other celebs at Mumbai airport
Photos: Salman Khan's 'special friend' Iulia Vantur at a song launch
Photos: Hrithik Roshan, Anushka Sharma, other celebs dazzle at event
In Pictures: Sex scandals involving Indian politicians
Photos: Abhishek Bachchan and Farah Khan at Boman Irani's birthday bash