Thousands of Rohingya risk their lives each year making perilous sea journeys from camps in Bangladesh and Myanmar to try to reach Muslim-majority Malaysia and Indonesia.
Byar La, a rescuer from the Shwe Yaung Metta Foundation in the town of Sittwe, said more than 50 people were thought to be on the boat heading for Malaysia when it got into trouble in heavy seas on Sunday night.
"We found 17 dead bodies... as of yesterday," he said.
"We found eight men alive. Police have taken them for questioning."
Rescuers are still trying to find those unaccounted for, he said, although the exact number on board is not known.
Rakhine in Myanmar is home to around 600,000 Rohingya Muslims, who are considered migrants from Bangladesh and are denied citizenship and freedom of movement.