The Canadian Armed Forces says the men were on their way last week to a hunting camp in the Fury and Helca Strait, south of Baffin Island.
When the motor on their seven-metre boat malfunctioned, they made for a nearby island.
They were reported missing Saturday and a Hercules aircraft that was already airborne for an unrelated exercise was sent to look for them.
Due to thick fog, the plane had trouble with the search but another Hercules was able to spot the group on Sunday.
An RCMP rescue boat later towed the men in their canoe to safety.