Two people have been rescued after a boat caught fire and sank in the waters of Port Phillip, south of Melbourne's city centre.
Firefighters responded to the incident near Elwood beach around noon on Wednesday after residents reported seeing huge flames and plumes of black smoke.
A Fire Rescue Victoria spokesperson said police and the coastguard are also at the scene.
"At about 12.08pm today Fire Rescue Victoria crews responded to a fire on board a 30-foot cabin cruiser," they said on Wednesday.
"The fire engulfed the boat and despite the efforts of fire crews the boat has sunk."
Two people were rescued from the water and it's unclear if they sustained any injuries.
One witness named Dan described seeing the boat engulfed in flames.
"There's a boat on fire, there's black fumes of smoke," he told 3AW.
"I can see huge flames coming out of it, it's too far away to see any people but it's a massive boat fire.
"You can see it from all aspects of the bay."