The passenger ferry, the Spirit of Fiji Islands, is stuck on a reef near Koro Island.
The ferry's operator, Consort Shipping Limited, has confirmed that the incident occurred early this morning and all passengers and crew are safe.
Consort Shipping Limited's Fleet Superintendent, Hector Smith, says all 110 passengers are now off the vessel and are waiting on the island while alternative transport is arranged for them.
He says efforts will be made to refloat the ship during high tide.
"At about 5 o'clock this morning she was pulling out when this sudden gust of wind came to her Port side. This reef is just beside the wharf so it's basically always been a risky operation in this area, and she came along there and the Port side has touched because it was coming to low tide so we've decided to stay put and just wait for high tide this afternoon and then get out of there."
Hector Smith says the ship doesn't have any significant damage and there is no risk of any diesel leaking out.