The man who was wearing the lifejacket was able to swim around 240m to shore to raise the alarm that his mate was still in the water.
The Police Maritime Unit on Lady Elizabeth IV located the other man, who was treated for hypothermia.
Senior constable Roscoe Lane said the rescue was a good reminder of the need to be prepared before heading out on a boat.
"Police would like to remind people to check your craft and equipment is working before you hit the water.
"Always wear a lifejacket when boating or using any other craft on the water, a pool noodle is not sufficient.
"It's a requirement to have a lifejacket of the right size for everyone on board, and good to have two forms of communication if possible and tell someone where you're going and when you'll be back."