The only injury was to a young woman driving the car whose front was smashed in the crash.
She suffered an injured ankle and was transferred to Letterkenny General Hospital.
A Donegal Garda spokesman said the 25 German tourists and their driver escaped injury because they were all wearing seat-belts.
Their coach, from Slieve League Bus Tours of Carrick, Co.Donegal, tumbled on its side into a ditch on the side of the narrow road at Fintra, near Killybegs.
Brendan Boyle, whose house is directly opposite the scene, said all the people were brought into his house and attended by medical personell.
He said few of the Germans were in shock but they had no other injuries.
He gave them a cup of tea and a drop of whiskey.
The road was closed for several hours after the 10 a.m. incident until a crane hoisted the coach out of the ditch around. 2.30 pm this afternoon.
Long queues of traffic had formed either side because of signal difficulty in drivers being alerted to avoid the area by phone.
A Garda spokesman said it was truly a miracle that nobody was seriously injured. They had their seat-belts on and the coach had a ‘soft’ landing in the ditch.
The Germans were on their way to Slieve League. They continued their journey to the Slieve in a replacement coach before going on tonight(fri) to their next destination, Castlebar, Co. Mayo.