Rescue teams using off-road vehicles and paratroopers deployed in helicopters raced to locate the capsule, near the Kazakh city of Dzhezkazgan.
After the booster failed, Ovchinin and Hague were forced to make a ballistic descent, coming back to the ground at a sharper angle than normal and causing higher gravitational forces on their bodies.
Thursday's incident is thought to be the first launch mishap for a Russian Soyuz booster since a Soyuz mission was aborted in 1983.
Kremlin spokesman Dmitry Peskov told reporters that the most important thing was that the two men were alive.
A Russian Soyuz rocket carrying a new U.S. Ovchinin spent six months on the orbiting outpost in 2016.
A duo of astronauts from the USA and Russian Federation has blasted off for a mission on the International Space Station.
Two astronauts make emergency landing after Russian rocket malfunctions during lift-off
Last month, the current ISS crew discovered a hole in the vessel that Russian Federation claims was drilled deliberately. Eastern time aboard the Russian Soyuz MS-10 spacecraft from the Baikonur Cosmodrome in Kazakhstan.
Soon afterwards both space agencies were reporting the astronauts were in good health.
It is also possible that this event could affect the next scheduled crew launch of three astronauts in December who were set to replace NASA astronaut Serena Auñón-Chancellor, Russian cosmonaut Sergey Prokopyev and Gerst. "The emergency rescue systems of the MS-Soyuz spacecraft worked smoothly".
A photo posted by Russia's Roscosmos space agency shortly before launch showed Ovchinin and Hague awaiting launch in their capsule - ready to complete two weeks of intense preparations and final tests at the Baikonur launch site.
"The boys have landed", Mission Control assured the crew consisting of one American, one German and one Russian.
The Soyuz crew capsule and the two crewmembers inside - NASA astronaut Nick Hague and Russian cosmonaut Aleksey Ovchinin - plummeted back to Earth in a ballistic re-entry but landed in good condition.
Russian Deputy Prime Minister Yury Borisov, who oversees space flight, promised to share all information from the investigation with the United States and said that manned space launches would be suspended until the end of the probe, according to Russian news agencies.
Two astronauts from the US and Russia are making an emergency landing after a Russian booster rocket carrying them into orbit to the International Space Station has failed after launch.
Sadly, Orion isn't even close to being certified for crew delivery, and the rocket meant to put it into orbit, NASA's Space Launch System, is in a parlous state.
Questions are now likely to be asked about how efficiently Russia's space program is running. The hole caused a brief loss of air pressure before being fixed.