Some of the bodies have dates of death as far back as 2015, and the funeral home in the US city of Detroit has now been shut down.
More than 60 human foetuses have been found stashed in cardboard boxes and freezers at funeral home in Michigan.
Officers made the “deeply disturbing” discovery in Detroit on Friday, with some of the bodies having dates of death as far back as 2015.
Perry Funeral Home is the second such facility in Detroit where remains have been found, after 11 foetuses were reportedly discovered in a ceiling at the former Cantrell Funeral Home on Friday 12 October.
Detroit police chief James Craig has announced an investigation into both homes, but said there is no connection between the facilities.
DaVisha Dellihue, who had her stillborn cremated at Perry Funeral Home in 2017, told ABC News that when she received her baby’s ashes she felt like something was wrong.
She added: “When I got them I opened them up and instantly told my sister and mum – ‘this not her you know, I don’t think this is my daughter’.”
Ms Dellihue said: “I paid money for my daughter, I want her you know… it’s heartbreaking to know that people are out there doing sick things like that.”
Investigators removed 63 foetuses from Perry Funeral Home, with 36 found in boxes and 27 more in deep freezers.
Mr Craig said on Friday: “This is deeply disturbing.
“I have never seen anything like this in my 41-and-a-half years [on the force].”
The Michigan Department of Licensing and Regulatory Affairs has suspended the license of Gary Deak, the director of the funeral home, and has shut the facility down.
Bodies awaiting burial or cremation will be placed in the department’s custody.
A person can be found guilty of a felony under Michigan Law for “failure to or refusal to supervise the final disposition of a dead human body” more than 180 days after a funeral, ABC News reports.
The US site added that the person may face a maximum of 10 years in prison and/or $50,000 (£38,250).