05 August, 2017
Three people are reported to be missing, feared dead, while up to 20 people have been rescued, according to the Courier-Mail.
The combat readiness training, which was expected to end in late July, was based at Shoalwater Bay Training Area, near Rockhampton.
The MV-22 Osprey went down earlier today - with ships and other aircraft being scrambled to help with the search and rescue mission.
"There is an active search and rescue operation ongoing for service members involved in a MV-22 mishap", US Marine Corps confirmed in a statement.
Fox News, citing a USA defense official, reports 23 of the 26 service members were safely recovered. We will provide more details as they become available, ' the US Military said in a statement.
It has a top speed of 351 miles per hour and has both vertical take off and landing and short take off and landing capabilities.
The Osprey aircraft were in Australia for Operation Talisman Sabre, which saw defence forces from the United States and Australia conduct training exercises off the Queensland Coast.
MV-22s have been involved in several serious crashes, some of them fatal, in the 10 years they have been used by the U.S. military.
Last month, 15 service members were killed when a Marine Corps cargo plane crashed in Mississippi.