The boat's two occupants jumped into the water and swam to the dock after their boat went up in blazes.
Investigators aren’t sure how the fire started.
One person received minor burns and was taken to Firelands Regional Medical Center for treatment, Sandusky Fire Captain Jason Roesch said.
"They had just pushed off and tried to start their boat," Roesch said. "That's when it went up. Luckily, the wind was blowing out into the bay, which pushed the boat away from the docks."
The boat slowly drifted into Sandusky Bay between Battery Park and Cedar Point. The fire burned for about 20 minutes until a Sandusky Fire Department boat was able to put the blaze out.
"It took that long because of the amount of fuel that was burning," Roesch said.
What was left of the boat sank after the fire was extinguished.
A response team from the U.S. Coast Guard will likely review the debris and environment to make sure the local water wasn't polluted.
It's possible the team will review the wreckage, too, said Mike Higgins, fireman with the U.S. Coast Guard Marblehead station.
Sandusky fire and police departments, along with the U.S. Coast Guard, responded to the scene.