A major search was launched after a small sailing dinghy was spotted heading straight into gale force conditions off the Devon coast.
The 14ft (4.2m) boat was seen heading out to sea from the River Exe by the skipper of a boat that was making its way back into Exmouth.
The boat, with two adults and two children on board, was later found in heavy surf near Lyme Regis harbour.
It was helped to shore by lifeboat volunteers. No-one was hurt.
The RNLI said the family was not thought to have had any form of communication or emergency flares on board.
Both children were wearing lifejackets but the adults were not.
Kevin Riley, Exmouth RNLI operations manager, said the family had been very lucky.
"The weather was getting worse, with a gale force 8 imminent, and the seas were building so it was not a good place to be," he said.
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