The reptile was seen slithering in the central part of the Indonesian holiday island last week.
"When I got home from work, I parked my motorbike next to the snake," said local resident Gusti Bagus Eka Budaya.
"I looked more closely and it turned out to have two heads. I was shocked."
A video shows several children gathered around the tiny serpent -- small enough to fit in the palm of a human hand -- as it slides about a banana leaf decorated with a traditional Balinese Hindu offering.
It was not clear what kind of snake it was or whether it was venomous.
Experts have previously been quoted as saying that two-headed snakes rarely occur in the wild and have usually been bred in captivity.
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