Smoke billowed from the 40-foot boat as it cruised near the L.A. Light, the lighthouse at the end of the jetty in San Pedro.
Firefighters on two boats were dispatched at 8:48 a.m. and they tied up to the stricken boat. The engine fire was put out, according to Margaret Stewart of the Los Angeles Fire Department.
The passengers were safely taken off the boat, Stewart said. Two may have suffered minor smoke inhalation, according to firefighter radio transmissions.