The RNLI were dispatched to the scene by Valentia Coastguard just after 7.30 yesterday evening.
They located the 40 ft cruiser behind Illaunmor in an area with many rocky shoals.
Initial efforts to get the boat off the rocks were unsuccessful as it had run aground hard and the five passengers were transferred to the Lough Derg lifeboat before their own vessel was taken out to safe water.
They then returned to the cruiser and the RNLI lifeboat accompanied them to Dromineer where it was safely tied up in the public harbour just before 9.30
There were no injuries and the five were all wearing lifejackets.
