Mr Pallas (73) lost his dog at sea when he and his yacht Thetis II were washed ashore at Eglinton beach in a storm.
Yanchep resident Amanda Houstoun told the Weekender this week a couple had returned the dog she had found to Mr Pallas and his wife before helping them bury it at the back of their Fremantle home.
‘They were such a lovely couple I met on the beach,’ Ms Houstoun said. ‘They said ‘don’t worry we’ll take the dog to the owner’.
‘To dig the grave and bury the dog for these elderly people I think was fantastic.’
She said the dog had been wearing a blue collar and registration tag, through which the couple were able to find the yachtsman’s address before taking the dog to him in their truck.
Mr Pallas’s yacht was still lying on its side on the beach in Eglinton this week, the cabin gutted and burnt.
While the Weekender photographed it on Monday, young people arrived to swing on a milk crate tied to a rope hanging from the mast.
A City of Wanneroo spokesman said the council was investigating who would be responsible for removal of the yacht.