Police are investigating the circumstances surrounding an incident at Caves Beach overnight where a teenager was stabbed.

About 9.45pm on Saturday 17 September 2016, police believe that a group of teenagers had gathered for a party at a beach known at Spoon Rocks near Caves Beach.

A 15-year-old boy became involved in a verbal argument with another male party goer who produced a knife.

A fight ensued during which the 15-year-old boy was stabbed once to the lower left abdomen.

Following the fight the unknown assailant and several other party goers fled from the area.

The injured youth was assisted by his friends to a nearby home where emergency services were contacted.

The boy was treated by Ambulance Paramedics and conveyed to John Hunter Hospital where he underwent emergency surgery and remains in a serious but stable condition.

Officers from Lake Macquarie Local Area Command attended and established a crime scene with several items seized for forensic analysis.