The 26ft pleasure boat went up in flames 600 metres off Aberystwyth and Coastguards have been asking all vessels in the area to stay a mile away from it as a precaution.
The vessel contains flares, some of which were going off at the scene, and a gas canister.
The RNLI lifeboat from Aberystwyth is monitoring the situation and the Aberystwyth Coastguard Rescue Team are also on standby on the shoreline to report any possible pollution and wreckage.
The RNLI Inshore lifeboat from Aberystwyth rescued the man at around 10:30am and he was taken by ambulance to hospital in the town.
Roger Reed, Watch Manager at Milford Haven Coastguard, said:
Resources were quickly on scene and the man isn’t believed to have suffered any serious injuries.
The boat is severely ablaze and there is a lot of smoke. We have put out a security broadcast advising other vessels in the area to stay well clear of it.