A man and his two grandsons have been found after they went missing while bushwalking near Lithgow, west of the Blue Mountains.
A police spokesman confirmed to AAP about 3pm on Thursday the trio had been found.
The spokesman said the 64-year-old man and the children, aged nine and 12, were alive. The state of their health was unknown.
He said the group remained in bushland and would have to be winched to safety.
A search was launched on Wednesday night after the trio failed to return home from a bushwalk.
On Thursday morning, police located the grandfather's white Nissan Navara near the search area.
The man's mobile phone was traced to the Newnes area, which is where police and emergency services concentrated their search.
The trio were later reported to be in good condition despite spending a cool night in the bush, and were treated for minor cuts and bruises.