A group of young people was walking along the northern rock shelf of the beach when a freak wave hit, sending Stefan Leonte, 22, from Ashfield, into the ocean.

The father dived into the ocean in an attempt to rescue Mr Leonte, who had become caught in a rip.

Mr Leonte was carried over 100m out to sea before he was able to make it back to the beach.

But the 50-year-old could not be located, sparking a land, air and sea search by emergency services.

Canberra tourist Steve Mills was at the beach with his children when he saw Mr Leonte exit the water.

"I just brought the young kids down this morning to have a look when a young guy ran up soaking wet," Mr Mills said.

"He asked if I'd seen a couple of girls or not. They were part of a group on the rocks."

A rescue helicopter was alerted.

During the search for the missing man, the Kiola Coastal Patrol vessel capsized and overturned on to rocks about 4pm, sending two crew members into the ocean.

Far South Coast emergency co-ordinator Andrew Edmunds said the two men were winched out by helicopter and transported to hospital, suffering minor injuries.

"It's a been a terrible couple of days," Mr Edmunds said.

The search for the missing man was continued yesterday before being suspended at 4pm.