A 24 metre fishing and passenger boat struck a rock in Foveaux Strait this afternoon, forcing the skipper to run aground.
The vessel was taking on water when it made the emergency grounding near Ruapuke Island, allowing its 23 passengers and three crew to disembark without injury.
They were pickedup by Bluff Coastguard soon after.
The Transport Accident Investigation Commission and Maritime New Zealand have launched investigations into the incident.
The Coastguard's Rescue Coordination Centre was notified at 12.30pm that Torea struck a rock and was taking on water east of Green Island in Foveaux Strait.
Initial response was provided by two Coastguard vessels from Bluff and Riverton, and three winch-capable helicopters - two from Dunedin and one from Te Anau.
Five fishing vessels in the area were also en route to provide assistance.
However, once the 26 crew and passengers were rescued, the response was scaled down.
The Bluff Coastguard vessel has ferried passengers and crew from the Torea back to Bluff.