Danny McDaid, who was 56 and the father of two daughters, was recovered from the waters off Kinnego Bay.
Pieces of the boat were found floating nearby.
However the main wreckage lies at the bottom of the sea and was found by divers.
Attempts will be made to raise it later today.
Cllr Martin McDermott said the people of Glengad, where Danny was from, were in a state of shock.
The village has suffered several previous fishing related tragedies.
“There is a very sombre mood. It’s an awful tragedy for his family and the entire community,” he said.
Greencastle Coast Guard, the RNLI crews from both Lough Swilly and Portrush and the Sligo 118 helicopter all responded to the emergency.
But Danny was found in the water.
The Marine Casualty Investigation Board is now investigating the tragedy which took place in relatively calm waters.
Experts will try to piece together what happened by gathering remnants of the fishing boat from the surface – and by attempting to raise the vessel today.