Firefighters remained at the scene of a blaze on the water at Port Stephens on Tuesday morning after a vessel caught alight.
The 70-foot yacht caught fire at the Nelson Bay marina about 9.30pm on Monday and burned through the night.
Eleven Fire and Rescue NSW crews - from as far away as Kearsley in the valley - and the NSW Rural Fire Service rescue boat, attended the scene.
The fire was close to other luxury boats, trawlers and cruise vessels but firefighters were able to stop the damage from spreading to other craft or the marina itself.
The burning yacht had sunk by early Tuesday morning and fire crews were continuing to work on extinguishing part of the blaze which continued on a portion of the vessel which was protruding above the water line.
The cause of the fire is being investigated.