Search and rescue (SAR) operations commander Mohd Khairi S Zainudin, who is also the Kulai Fire and Rescue Department station chief, said both hikers, Dominick Tan Chang Xiang, 27, and Lum Jie, 27, were found by the SAR team at 11.24am.
They were about 50km from the last location where they made a distress call to 999 on Monday.
The hikers had entered the Gunung Pulai area at 12.15pm on Monday and made a distress call to the authorities at 5.55pm the same day. They were last contacted about 10pm.
The pair were spotted at a lake near the dam by a police helicopter team and sent to the Pontian Hospital for treatment.