Can a person claim a dependent (child) on her tax return if she is claimed as dependent on her parents' tax return?

Here is what I want to do - claim my daughter as dependent on my tax return. If I do that, TurboTax does not allow her to claim her child as her dependent. It says that if she is claimed as a dependent on another person's tax return, she can't claim dependents on her own tax return. Is this correct? Thanks.