Emergency services were called to Obelisk Beach off Chowder Bay Road, in Mosman, at about 5.10pm on Monday following reports a man had failed to resurface.
The man had been swimming out to a yacht anchored off the beach when he vanished underwater.
The body of a missing swimmer who disappeared off a nude beach has been pulled from Sydney Harbour. Mosman Bay is seen. Picture: Getty Images
NSW Police officers from the Marine Area Command began searching for the swimmer with the assistance of PolAir, Marine Rescue and NSW Maritime.
Police divers then attended and conducted an underwater search.
The body of a 38-year-old man, who is yet to be formally identified, was recovered at about 8.20pm.
A report will be prepared for the Coroner.

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