Police inspector describes fearing the worst during search for Tolaga Bay boy Axle

A police inspector in the region where three-year-old boy Axle went missing on Tuesday concedes they thought the worst when he failed to show up and night fell.

Emergency Services were joined by hundreds of volunteers to find the toddler when he disappeared from his Tolaga Bay home, near Gisborne.

After a desperate 20-hour search, he was found safe and happy 3 kilometres from his home and emotionally reunited with his family.

The man who found Axle said he was cold, disorientated, and crying out for his mum. Axle spent Wednesday night in hospital as a precaution but it's believed he'll be discharged on Thursday morning.

Tairāwhiti area police commander Insp Sam Aberahama says it's incredible how high Axle's spirits were after the young boy slept overnight in a small gully.

"It's one thing being in the bush overnight - it's another thing being a 3-year-old away from your mum," he told The AM Show on Thursday. "That was really concerning." 

But Aberahama said while the story had a happy ending, it wasn't an easy ride.

"When the search teams finished at midnight the night before and I hadn't had a call - it's probably fair to say it was a low period but we had to keep optimistic.

"We had to keep positive - there was no evidence to suggest other than the boy had wandered off so we had to just go again the next day and, wow, what an outcome."

After a search through forests and across farms, Axle was reunited with his family about 10:45am on Wednesday. Aberahama said it was an emotional moment.

"Just huge elation," he said. "The community's hearts poured out - they brought their hearts and their bodies to the… area to do their best in supporting that whānau and finding Axle."

Family friend Ange Marsh told Newshub on Wednesday Axle's mother spent all night search the area - along with hundreds of others.

"All I could hear was this really happy little boy talking about his big adventure, and obviously mum and dad are absolutely in tears and happy and relieved," Marsh said.