The three men were heading out from Boat Cove in Dawlish when their vessel started sinking. Two of the men managed to make it to shore.
The UK Coastguard received a 999 call just after 9pm on 18 August reporting that a 12-foot boat was sinking off Dawlish, south coast of Devon.
Three men were believed to be on board the vessel which was at Boat Cove.
The volunteer RNLI crew of the Teignmouth lifeboat and members of the Teignmouth Coastguard Rescue Team were scrambled to the scene.
An ambulance crew from the South Western Ambulance Service was also called.
A coastguard spokesman said that on arrival, it was found that two of the men had managed to make it to shore.
The boat, which is believed to have capsized before starting to take on water, was towed to shore.
Paramedics checked over the three men. None of them needed to go to hospital.