Coastguard Rescue 104 helicopter from Lee-on-Solent is also in attendance and is searching the sea to both the left and right of Sandown Pier.
Officers from Hampshire Constabulary are now on scene and are working with HM Coastguard to ascertain if there are any persons in the water.
Bembridge and Ventnor Coastguard Rescue Teams are searching the shoreline on foot and Coastguard Rescue 104 continues an aerial sweep of the area.
Several Police units are now in attendance including a Dog Support Unit.
A HM Coastguard spokesperson has told Island Echo that the search did not locate any person or object which could be mistaken for a person and has been deemed as a false alarm with good intent.
Anyone with any further information is asked to contact Solent Coastguard.
VIDEO: Thanks to Island Echo reader Tina Evans for sending in this video of the rescue helicopter searching the Bay.
First photo by Peter Churchman