The captain of the fishing boat, Brandon Viets, said he had taken guests on a fishing trip when he heard a jet take off near the naval base, AP reported.
The plane, a E/A-18G Growler Electronic Warfare aircraft, dived into San Diego Bay not far from the naval base it was coming into land at at around 10.15am local time on Wednesday.
The jet was reportedly coming into land at Naval Air Station North Island in San Diego Bay, according to the Navy.
A shocking clip shows the jet dive into the water nose first at high speed sending a large plume of water and "muck" into the sky.
Viets said the plane “seemed a little louder than normal” and by the time he turned around to look, he could see two parachutes in the air.