A PASSENGER plane crashed into a lagoon in Micronesia after reportedly overshooting the runway during landing - and miraculously everyone survived.

The Boeing 737 was flying to Papua New Guinea when it plunged into waters near Chuuk International Airport on Weno island at 9.30am local time on Friday.

Pictures and video from the scene showed boats surrounding the submerged aircraft as a rescue mission got underway.

Local media reported that authorities confirmed all 36 passengers and 11 crew on board were rescued with no reports of serious injuries.

Reports say the plane was making a scheduled stop on Weno island in the Federated States of Micronesia before heading to Port Moresby, the capital of Papa New Guinea.

Details surrounding the cause of the crash aren't yet known, but officials from PNG aviation authorities said investigators were making their way to the scene.

Chuuk airport manager Jimmy Emilio told local reporters the plane cleared the 6,000ft runway by about 525ft.

John Merelli, who works at a hotel close to the runway, said he heard the plane coming in but thought it was a normal landing.

He told Guardian Australia: “I went back to my workplace and somebody told me, and I looked from the rooftop and the plane was starting to go underwater.

“It was sinking. It’s under water now.

“The plane crashed and in around five minutes the rescuers were there, they were ordinary people, because there are plenty of boats around the shore.”

He said officials took around 10 minutes to reach the scene.

Passengers who have previously used the airport on the tiny island have reported that it has a short runway.

Ethan Klapper shared a video on Twitter which he had taken while he came into land at Chuuk in July.

He said: "Reports of an Air Niugini 737 overrunning the runway in Chuuk, Micronesia (TKK). That's a 6,013-foot runway, which is on the shorter side for an airport with airline service.

"I flew into this airport in July, you can see how hard the braking is on landing."

The service between Pohnpei, Weno island and Papua New Guinea reportedly runs just once a week.