A man in his 40s and another in his 70s were pulled from the water an hour ago after their boat sank about five nautical miles offshore from Nambucca Heads.
The men were out on a 5.4 metre aluminium boat when it began taking on water.
The pair managed to make contact with someone onshore, who then phoned in for help from Marine Rescue at around 10.15am.
Both men were wearing lifejackets and personal locator beacons, which thankfully led the rescue crews right to them.
MRNSW Mid North Coast Regional Operations Manager Randall Gawne said the Trial Bay 30 crew had quickly spotted the men and retrieved them, with the help of the rescue helicopter.
"What a fantastic result," he said.
Mr Gawne commended the seamless cooperation of the three rescue services involved.
Marine Rescue said the man in his 70s is reported to be in shock but was able to talk with his wife on the phone on the way back to shore. Otherwise the pair are uninjured.
A NSW Ambulance will meet rescue vessel Trial Bay 30 at South West Rocks.