The video was posted by Cindy-lou Togo from Queensland, Australia, when the horrific incident happened at Cardwell Beach on Thursday.
Speaking to the Cairns Post Cindy-lou said she was not aware that crocodile numbers had increased in the area, even though she knew they came to the beaches.
She said: “It’s a well known crocodile habitat.
“We fish the beach all the time with the family. We do see (crocodiles) up and down the beach.”
The shocking footage shows two dogs running after each other along the shoreline and the person recording the footage could be heard saying “oh how close is this”.
As the dogs continued to play the man said: “Sorry, it won’t come near me.”
But seconds after the dog was snatched by the crocodile.
A loud splash was heard as the man looked on in shock, saying: “F*** me man.
A spokesman for the Department of Environment and Science told the Cairns Post a 3.5metre crocodile was seen in the area and said any reptiles displaying dangerous behaviour will be removed.
Beachgoers were advised to keep their dogs on a leash.
Social media users expressed their shock at how easily the dog was snatched, saying it could have easily been a child.
One person wrote: “Oh darnt (sic) that could of easily been a kid bugger that sis.”
“This is past a bloody joke..its got stop,” another wrote.
A third person added: “Won’t be long, a child will be taken then the finger pointing will start.”