Vermilion police said they received the call around 3 p.m. Saturday.
Tow Boat US was first on the scene and transferred all six people onto their boat.
Vermilion police Marine Patrol Unit then arrived and put out the fire with their board fire fighting pump and bow mounted deluge water cannon.
When the Boston Whaler was within shore range, Vermilion firefighters sprayed foam on it from their position on the beach.
The disabled boat was then towed back to port and the occupants were returned to the dock.
According to police, the boat engine is a total loss, but the rest of the boat was not damaged.