Rosebud, Victoria: Four teens found at Swan Island after dramatic land and air search overnight

Four teenagers have been found alive and well in what police have called a "Christmas miracle", following a dramatic overnight search in waters off Victoria's Mornington Peninsula.

Two 18-year-old men and two women aged 18 and 19, were using two inflatable paddle boards off Rosebud Beach on Monday when they went missing.

Their belongings were found on the beach by a passerby at about 8pm, the teens were then found on Swan Island, off the Bellarine Peninsula, about 9am on Tuesday.

Tides and winds had swept them 30 kilometres west across Port Phillip Bay to the Queenscliff area.

A Victoria Police spokesperson said the teens couldn't fight against the easterly wind so floated with the tide and ended up on Swan Island - on the opposite side of the bay - around 2am.

"Cold and disorientated, the four found shelter in a hut," they said.

"Once the sun came up, they wandered the island and were located by security who contacted triple-0."

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Victoria Police Acting Inspector Ian Pregnell told Melbourne radio station 3AW "all too often, these things usually end in tragedy".

"This is, one might say, a Christmas miracle."

Father of one of the teens, Jack Shi, told Nine News the parents were relieved their kids were safe.

"We're very, very happy about that. It's huge, huge relief. We were very desperate," he said.

An Ambulance Victoria spokeswoman said paramedics assessed the teens when they were found, before taking them to Geelong Hospital.

"All are in a stable condition with no obvious injuries," she said.

A man who said he was the father of one of the boys told Seven's Sunrise program on Tuesday the teens had just completed their final school exams and went to Rosebud for an end-of-year celebration.

With AAP.