Tenby's two lifeboat crews were paged on Sunday afternoon following a report of children in the water at Stackpole.
Both the all-weather Tamar class boat and the inshore craft were tasked after a dinghy with children aboard was seen to capsize leaving the children in the water.
As the ILB proceeded and the ALB was about to launch, the children managed to get safely ashore. The ALB stood down and the ILB rehoused.