According to The Telegraph, a solo skydiver collided with the other two who were performing a tandem dive.
It is the site of Australia's highest commercially available tandem dives, taking place from around 15,000 feet.
"You could see one chute was tangled and it wasn't opening", he recalled.
'I was just watching him in free fall until he went behind the trees, and that was the last I saw'.
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Three skydivers have died in North Queensland, Australia, in what police said might have been the result of a mid-air mishap.
Queensland police said the victims were two males who were highly experienced skydiving professionals, aged 34 and 35, and a 50-year-old woman customer.
Skydiving is an attraction for adventure-minded tourists in the area, along with whitewater rafting on the Tully River, he added.
Skydive Australia, the company that operated the skydive, said in a statement: "One of the deceased, a highly experienced instructor who had completed thousands of jumps, was completing a solo jump".
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"Every person in Mission Beach we have spoken to about #skydive tragedy is absolutely heartbroken Big industry, well supported by locals", reporter Daniel Bateman reported on Twitter.
The other two bodies were found in a tree nearby. I could understand two, maybe, but not three.
There are a number of skydiving companies operating in Mission Beach.
Police will compile a report for the coroner with the investigation to be assisted by CASA and the Australian Parachute Federation.
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