It was around 5:45 a.m. when Ocean City Public Works personnel, who were out cleaning the beach, came across a body by the waterline near 24th Street.
Ocean City Police called in State Police who confirmed the body as that of 34-year-old David McAuliffe.
The Cape Hatteras, a 45-foot vessel owned by Sea Tow, went missing last Tuesday along with McAuliffe.
The Coast Guard told Action News an emergency response device was activated aboard the Cape Hatteras. The signal, which came in at 10:50 a.m. Tuesday, indicated the boat was off 39th Street in Ocean City.
Coast Guard crews dispatched within minutes to that location, found debris floating in the water, but no sign of the vessel.
Officials from Sea Tow said the Cape Hatteras was on its way to a routine inspection by the Coast Guard when it went missing.
The vessel left Absecon Inlet at 7:45 a.m. with one crew member on board, heading for Great Egg Harbor.
Officials say McAuliffe did not respond to cell phone or radio calls after the emergency signal was received.
Action News previously reported that the body found on Wednesday might have been that of another missing boater, 24-year-old Josh Cattlet, whose boat capsized in the Delaware Bay in early April.
The search for Cattlet was called off after several days. He remains missing at this time.