Crews from Yarmouth and Newport were called to the scene at 17:15 after receiving reports that a rigid inflatable boat (RIB) was suffering a fire in the inboard engine compartment.
Both crews are now on scene alongside two officers, however the fire is believed to be out.
Investigations are underway to ensure the fire has been fully extinguished.
Paramedics from the Isle of Wight Ambulance are also on scene alongside The Needles Coastguard Rescue Team.
UPDATE @ 18:15 – The fire, believed to be electrical related, has been extinguished and crews have left the scene.
No pollution has occurred.