Missing toddler found safe after vanishing from Western Australian holiday house

A three-year-old boy missing in Western Australia's south west has been found.

James O'Reilly was playing in the front yard with his dogs about 7am today when he vanished. He was wearing only his Spiderman pyjamas and gumboots.

Police and volunteers had battled wild weather today in search of the toddler who went missing from a holiday house on Karli Rise in Yallingup.

9News can reveal James' grandfather found the child alive in bushland this evening.

"His Aunty tells me his granddad has just found him in dense bush kilometres from the house," 9News reporter Kamin Gock tweeted.

"He was asleep but was able to talk and said he was hungry."

WA Police have confirmed James has been found alive.

"James has been located in bushland alive by a family member who was assisting with the land search operation," Police said in a statement.

"WA Police Force thanks all the emergency service volunteers and community members who assisted with the search."

James and his family had been holidaying in the surf town on a trip from Perth.

Earlier today, volunteer Eamann McGrath described to 9News the mood of James' parents during the frantic search.

"She (the mother) was already very, very distraught," Mr McGrath said.

"The dad, calling out for the child… you could tell there's some real panic going on. That was really pretty troubling."

In a statement from James' aunt, she described him as a "very bright, curious and cheeky little boy."

"(He) is very much loved by his mum, dad and little brother," the statement said.

Drones were used in the search, fitted with a pre-recorded message from James' mother to follow the red and blue flashing lights back to the house.

"The terrain around the holiday home is very thick, dense bush," Inspector Voyez said.

"And very difficult for people to walk through."

Police said stormy conditions had put pressure on searches and the family.