The Coast Guard says three people were able to escape onto a life raft where the Coast Guard found them in the water.
The three people were taken back to shore where EMS was waiting.
Dauphin Island Mayor Jeff Collier says the three people are reportedly doing well.
The Coast Guard has taken fire crews to the boat to help put out the fire.
The cause of the fire is currently undetermined.
The following is a press release issued by the Coast Guard:
The Coast Guard rescued three people who went into the water after their vessel caught fire near Dauphin Island, Alabama, Wednesday.
Watchstanders at Coast Guard Sector Mobile received a report at 5:55 p.m. of three people aboard a 36-foot sport fisher that caught fire in Dauphin Island Bay approximately a half a mile north of Dauphin Island.
Sector watchstanders directed the launch of a 29-foot Response Boat-Small crew from Coast Guard Station Dauphin Island to assist the people.
The three people departed their vessel onto a life raft.
The boatcrew arrived on scene at 6:35 p.m., located the three people and transported them to Station Dauphin Island to awaiting emergency medical services in stable condition.
The boatcrew transported members from Dauphin Island Fire Rescue to the burning boat to fight the fire.