Three luxury yachts have met a watery fate, while another sustained damage following a fire at a marina in Sydney.

The fire ignited on one of the yachts around 3:30 a.m., rapidly engulfing nearby vessels docked at The Spit Marina in Mosman, located on the city’s lower north shore.

The intense flames illuminated the early morning darkness, sending thick plumes of smoke into the sky.

Responding swiftly, fire crews, local police, and the NSW Port Authority worked together to combat the inferno.

Fortunately, no one was seriously injured, although four individuals were treated for mild smoke inhalation.

NSW Fire and Rescue Superintendent Adam Dewberry said the fire has been contained.

“There’s been some damage to those other yachts, but fortunately, firefighters have been able to cut it [fire] off because we could have lost dozens of these vessels.”

Firefighters are now leaving the scene and it will be left with the marina management to organise recovery operations, including the cleaning-up of oil and fuel in the waters of The Spit.