The incident unfolded about 1 p.m. in the town of Lincoln Park, in Morris County.
The dog, a black Lab named Tsunami, apparently got startled in the backyard and ran.
It then stumbled over the cliff into a heavily wooded area behind some homes on Rosenbrook Drive.
The owners searched frantically for the dog throughout the afternoon until they finally heard her yelp for help.
Finally, volunteer firefighters used rops and a basket and propelled down the side of the cliff to rescue Tsunami.
Using a stokes basket, they were able to secure the dog inside and hoist her to safety.
"We were afraid that the dog once it got in the stokes would get loose or jump out, but this dog was very laid back, very calm and cooperative with us," said Capt Nick Cifelli of the Lincoln Park Fire Dept.
"She was stuck in a bramble bush, surrounded by a log and two rocks, and slid down about 10 or 15 feet," said her owner Linda Patel.
Now Tsunami, who is 13 1/2 years old and has cancer and arthritis, is safe and sound at home.