The Grand Manan 5 ferry has run aground near the Blacks Harbour Wharf and all passengers are being off-loaded into life rafts and taken to shore.
The incident took place about 9am this morning and some reports have it stuck on a rock.
Wendell Sperry of the Joint Rescue Co-Ordination Centre in Halifax tells CHSJ News no one is in danger but when transporting people from one vessel to a smaller boat, it's standard procedure to use life jackets and life rafts.
During high tide, an effort will be made to get the remove the Ferry from the rocks.
The Coast Guard is sending a vessel to the area to provide any assistance that may be needed.