Lost NSW bushwalkers found safe and well

Seven bushwalkers who spent a chilly night in a Blue Mountains cave have been found safe and well.

Police resumed their search at first light on Monday for the group, who failed to return from a hike in Katoomba.

One of the walkers was able to make phone contact with a relative, who alerted police.

"They are safe and well," a police spokeswoman told AAP.

"They were with police and emergency services at about 2.45pm. There were no serious injuries."

The bushwalkers, five men and two women aged between 27 and 69, were last seen on Narrow Neck Plateau about 1pm on Sunday.

Their exact location was unknown, and the bushwalkers were told to stay put and not try to walk out, Inspector Ken Shack-Evans said.

The group was not prepared for an overnight stay and did not have an emergency beacon.

"They certainly weren't dressed for overnight activities. Between the seven of them they only had two torches," Insp Shack-Evans said.

Police said they were an experienced group of walkers, but on this occasion the elements got the better of them.