Sydney marina workers praised over quick thinking as $260,000 yacht bursts into flames

Two marina workers are being praised for their quick thinking, after towing a burning boat to safety in Sydney's inner west.

It's believed the luxury cruiser caught fire while refuelling in Drummoyne, sending smoke billowing into the sky.

Even on the wet and windy day the smoke could be seen for kilometres - spotted from balconies and the Iron Cove Bridge.

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The mix of fuel and fibreglass ensured the motor fire quickly turned into a full-blown inferno.

Extinguishing the blaze was no easy task with fire ighters having to commandeer specialist boats equipped with a water cannon and tanks to reach the vessel.

"It is difficult - you need breathing apparatus and you need personal floatation devices, so it's a bit of a different incident to what we're used to," Ben Martin from Fire and Rescue NSW said.

Witnesses say the boat ignited as it was being refuelled at the Birkenhead Point Marina.

The two quick-thinking workers managed to untie the vessel and drag it into the middle of the harbour before it exploded.

One of the workers who tried to fight the fire was treated for smoke inhalation.

"He's fine he has no breathing difficulty anymore and he's been left in his own care," said.

The 12-metre cruiser was recently purchased by an aged care CEO for $260,000 but it's days of sailing are now over as it sits moored in a shallow bay away from other boats.