This is the terrifying moment tourists screamed and scrambled to safety when their ferry capsized off the coast of Bali.

The 125-seater boat, The Tanis, had just departed from Nusa Lembongan island when it was struck by a large wave from behind on Wednesday afternoon.

Holidaymakers on board panicked as the boat took on water and started sinking.

Dramatic footage shows frantic passengers wading through the flooded cabin. They clambered out of the windows when The Tanis tilted on its side.

Locals rushed to the scene with their wooden boats to help with rescue efforts. There were 89 tourists and crew inside the vessel at the time.

AKP Agus Widiono, spokesman for the Klungklung Police, said the evacuation was completed at 6:30 pm local time with no casualties reported.

He said: 'The Tanis was headed for Lembongan-Sanur Port. It was carrying four crew members and a captain, and 89 tourists.

'We have dispatched divers to ensure no one was trapped on the boat or on the seabed. Currently, two foreign passengers have departed for Sanur Port and the rest are staying in Nusa Lembongan.'

Australian holidaymaker Nicola Wood said she was with her husband and two children when The Tanis started capsizing.

She said: 'People smashed windows to escape. Most people back on shore before life raft and life jackets were thrown out - locals and smaller boats rescued kids and those out first.

'We made it out, jumped into the water and swam to a nearby glass-bottom boat that took us back to shore. Luggage is still washing up and being collected by Tanis staff.'

Authorities said efforts were ongoing to recover the sunken wreck.