Mr Oswald said the people on the beach had called other family members and two relatives came down to the beach with lifejackets. They followed Mr Oswald into the surf.
"The closest kid was about 40m out and it was quite a rough sea. At that point, I'd only seen the two kids and didn't realise their uncle was in the water as well. The three of us headed into the water, we got to the first kid, gave him a life jacket and strapped him in it. The other two were behind me and got to the other boy. The kid I was with kept saying 'my uncle, my uncle', that's when I realised there was a man out there."
Mr Oswald managed to get the man back to the beach.
A 36-year-old Hastings man, who now lives in Whakatane, the 11-year-old and a 13-year-old boy were admitted to Whakatane Hospital and later discharged.
The mother of the 11-year-old boy said Mr Oswald went "above and beyond the call of duty" and the family kept a newspaper clipping of Mr Oswald's rescue efforts on their fridge to remind them how lucky the family was.
The woman said Mr Oswald deserved the recognition.
Mr Oswald said he had received texts and emails and strangers approached him on the street to shake his hand, which he said had been embarrassing.
Being named The Daily Post Person of the Month was "pretty cool" but he was not looking forward to the "ribbing" he would get from his colleagues.