There were two people on board, the pilot and a seven-year-old boy, with the plane came down near Clonbollogue.
The pilot is understood to be from the United Kingdom while the boy is the son of a member of the Parachute Club according to RTE. He was flying a Cessna Caravan aircraft.
It is understood that the Air Accident Investigation Unit used digging machinery in an attempt to remove the aircraft from the bog because the impact of the crash had driven it into the ground.
Their bodies were recovered around 10pm and taken to Tullamore Regional Hospital where a post mortem will be carried out.
An eye witness described the plane descending "like a torpedo" before it crashed.
THE PAIR was in a light aircraft before they crashed in County Offaly.
It crashed near the Irish Parachutists Club in County Offaly, Ireland.More news: Trump to address Jerusalem embassy opening by video
"The engine was roaring". When it got near the tree line, I heard a thump then and that was it, that's all I can say. They said that they have never heard of any plane crash in the area before.
Gardaí have said the aircraft took off from Clonbullogue Airfield with 16 parachutists on board at around 2.30pm.
"It happened about ten minutes away from where I live".
Emergency services are attending the scene.
Gardaí cordoned off the site while emergency services worked at the scene.
Gardai said there was no confirmation on whether either had survived the crash.