The Floating Xanadu is Mayor Luskey's pleasure ship.
One night, Luskey and his wife were returning to Griffin Rock aboard the Floating Xanadu when Luskey realized they were dangerously close to the rocks as a result of the automatic lighthouse failing to activate. He contacted emergency services, and the ship was towed to safety by Blades and Dani Burns.
Deep Trouble Luskey took Doctor Morocco out on the Floating Xanadu to see the sun rise. Morocco later stole the schooner and used it to escape the island when his plans unraveled,
though he returned it later to "patch things up" with Luskey.
Luskey and Mr. Alper used the boat to deploy beacons to attract dolphins for the Dolphin Wonder Festival, however a beacon floated into the Xanadu's intake, causing a malfunction that sent the boat speeding out of control towards the island. Woodrow Burns came up with a daring plan, using Blades as a ramp to vault the boat into the air where it was caught by the other Rescue Bots. Luskey was so impressed he later presented Woodrow with a medal.
The Luskeys abandoned the island on the ship when a potentially-dangerous quantum crystal was found. After the entire island disappeared, the ship was capsized and eventually sank, though the Luskeys themselves were rescued.
The yacht again sank after it was hit by a series of rogue waves, however Blades was able to fish it out of the water.
- The Floating Xanadu appears to be named after Charles Foster Kane's mansion in Citizen Kane.