Crews from Wigan and Hindley were called to the bridge on Crooke Road in Crooke Village to reports of a vessel in the canal on fire.
They spent around four hours tackling the fire which broke out at around 7.45am on Thursday (July 2).
A man was taken to hospital with burns to his arms and head.
Watch manager Glynn McGann, from Wigan fire station, said: "The fire was contained to the rear of the boat and had spread to the living accommodation.
"It was a signfiicant fire and dangerous enough and the boat had fuel on it which was removed.
"Bystanders and other boat owners were present and stood and watched as the boat was on fire and loose in the middle of the water."
Mr McGann said crews managed to moor the vessel up which has now been left in the hands of the Canal & River Trust.
He said the fire service worked with the trust to mitigate any envionmental effects such as pollution from the fire.
The cause of the fire is under investigation.
An ambulance service spokesman said: "One ambulance attended a fire on a boat.
"A man was treated with burn injuries and taken to Wigan Infirmary."