Desperate searches were launched to find Jonah the collie, also known as Toobs, after she leapt overboard.
Owner Wayne Booth originally believed his four legged friend may have swum to shore after she disappeared near Falmouth in Cornwall.
But she was nowhere to be seen.
A huge rescue mission got underway with the coastguard monitoring the waters and police scouring the land.
And just as all hope seemed lost, the four-legged friend was finally spotted alive.
The poor pooch had paddled herself into a cave near St Anthony’s lighthouse.
A day after she first got herself lost, stricken Toobs was rescued by two 19-year-old kayakers.
Named as Harry Homer and Xander Meredith, the cousins had paddled into the cave “randomly” when they came across the pup.
Owner Wayne, of Falmouth, Cornwall, told the BBC: "It has been best afternoon possible.
"Two lads on kayaks went into a cave that you can only access by water and were surprised to find Toobs in there.
"They picked her up and took a fishing hook struck in her shoulder out, put her on top of the kayak and rode her back out.
"They put in on the internet and I had loads of phone calls. We are now all sitting here and Toobs is very happy and very tired.
"Anyone that knows me knows I always wear a life jacket and Toobs does as well. But she was below deck while we were sailing and at some time she came up and sneaked past me.
"I did not see her. She must have climbed up behind me and tried to jump into the dingy we were towing behind. That was the only place it does not have any netting.
"She must have tried to jump in it and missed."
One of the rescuers added: "We were randomly kayaking having a look into the caves and this one as the last one we were going into.
"She was extremely friendly and we carefully got her on the kayak and took her to the nearest beach.
"She was in pretty good nick considering she had quite a long swim."
They phoned their dad, who came round to pick up Toobs on his boat and take her to the safety of shore and put up a post on Facebook.
This led to an emotional reunion with Wayne at St Mawes followed by many victory drinks at the Victory Inn for her rescuers this afternoon.
Incredibly, Toobs had just one minor injury and was quickly treated by one of the rescuers.