Those onboard were initially delayed from being allowed to leave the ship, but were eventually permitted to disembark at about 11:30.
Coastguard aircraft from as Prestwick and Carlisle were scrambled to assist in the search alongside a commercial search and rescue helicopter.
Lifeboat crews from Anstruther and Broughty Ferry and Coastguard teams from Dundee, Arbroath and St Andrews also joined the operation.
The MS Ambition left Dundee for Newcastle on Friday evening.
A Police Scotland spokesperson said: “Around 8.55am on Friday, 21 August, 2026, we received a report that a man had gone overboard from a cruise ship in the North Sea.
“A search and rescue operation, carried out by police and partner agencies, has been ongoing and a body has been recovered.”
The MS Ambition was previously chartered by the Scottish government to provide temporary housing for Ukrainian refugees