The deceased, aged between 7 and 8, were children of migrant labourers from North Karnataka and resided some distance away from the beach.
Seven boys, all of the same age group, were playing in the water when four of them were pulled away by strong waves.
Though the local fishermen rushed to their rescue it was too late, police said.
Panambur Beach Development Project's CEO Yathish Baikampady said cases of children venturing into sea during the summer without their parents' knowledge are on a rise.