Mr Smith was knocked unconscious when the boom on his yacht hit him on the head, about 20km off the Wairarapa coast.
The experienced sailor had no recollection of the accident but thought he was "out for about two hours".
"I eventually came into the cockpit and I saw blood around and I figured I banged my head."
He immediately made a mayday call and Maritime responded and asked the sailor where he was.
A confused Mr Smith replied he was in the Hauraki Gulf.
"They said, no you're not. You're in the Wairarapa Coast," he laughed.
Crew on a nearby fishing vessel helped the sailor on board their boat.
The Westpac Rescue Helicopter arrived and lowered a paramedic and maritime police officer on to the fishing vessel.
Mr Smith was admitted to Wellington Hospital with a "really sore neck, really sore arms and sore head".
He suspected he fell on to his arms and hit his head.
Luckily, Mr Smith is on his way to recovery and expected to leave hospital next week.
He credited his lucky escape to his thorough planning before and throughout his journey down south.
"I filed a 10-minute report with the National Rescue Centre before I left. You fill out your details, next-of-kin details and your boat details.
"When I left Auckland I told Maritime New Zealand and let them know regularly where I was and what I was doing," he said.
Mr Smith stressed the importance of preparation before heading into the waters.
"That's why I'm here. Because I did the right thing."
The Aucklander has sailed "on and off" for most of his life.
He had planned this five-month trip for about two years.
"I've been to the Milford Sound a couple of times and I'm just fascinated with that area.
"I'm an adventurous person. I like the wild country."
Therefore it was no surprise when he was asked if the accident would stop him from sailing again.
"Absolutely not." he replied.
His yacht, currently docked at Chaffers Marina came off unscathed.
His brother was arriving in the capital to sail it back and Mr Smith would be making his way home by plane.
Maritime's advice for sailors
1. Wear a lifejacket - take the correct-sized lifejacket for each person on board, and wear them.
2. Check the marine weather - check the latest marine forecast and tides before you go out. If in doubt, don't go out.
3. Carry emergency communications - have at least two types that will work when wet. Keep them on you.
4. Avoid alcohol - it impairs your reaction times, ability to cope if something goes wrong, and survival time if you end up in the water.
