A huge bushfire that broke out south of Caloundra on Queensland's Sunshine Coast on Friday afternoon has been contained after hundreds of residents were evacuated from their homes.

Residents were evacuated on Friday afternoon as firefighters worked on the blaze, which had earlier reached the Bruce Highway.

Those people were advised later on Friday night it would be safe to return to their homes while crews conducted backburning to contain the fire.

At 6:30 on Saturday morning Queensland Fire and Emergency Service (QFES) said the fire was no longer a threat to properties.

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Bells Creek resident Kim Malcolm could see the fire in the distance.

"It's just getting closer and the fact that it's jumped this large highway is really now hitting home that it's actually quite serious," she said.

"Family friends … who live at Beerwah have come and collected our horses, so that's very good of them."

Earlier in the night QFES incident controller Jeff Hunter said winds had started to ease.

"We've got enough appliances here that are able to control it and we're working on containing it into the area," he said.

Bushfire burns near Caloundra ( Twitter: Bree Clarke )

No structures burnt yet

QFES deputy commissioner Mark Roche said crews had the fire contained in the south as winds pushed the blaze north-east.

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"There's no reports of any structures burnt. We believe some of the areas around the industrial estate were impacted, but that's around the grass and the bushland, not the structures themselves," he said.

"At this stage it's significant smoke, irritation around the area, and we expect that to occur for a number of hours to come.

"The royal fire crews, the fire rescue crews and other supporting agencies have done a fantastic job supporting the community and protecting the community over the hours."

He said the cause of the blaze was not known.

The QFES said spot fires were likely to start up to 4km ahead of the fire front, and embers also were being thrown from the fire.

Firefighters are working to control a bushfire on the Bruce Highway south of Caloundra. ( Facebook: Shirley Miller )

Evacuation centre set up

Many residents and businesses in the Aura estate have self-evacuated to family and friends, while police also are contacting residents.

Sunshine Coast deputy mayor Tim Dwyer said the Lake Kawana Community Centre had been established as an evacuation centre.

The fire is burning on the eastern side of the Bruce Highway near Caloundra. ( ABC News: Dean Caton )

"We've got 19 people who've made the choice to go to Lake Kawana Community Centre and take some shelter there, we've got our volunteers on deck there helping them with beverages and some food," he said.

The QFES said power, water and mobile phone services may be lost in the area over the next several hours.

A fire burning near the Bruce Highway at Caloundra on the Sunshine Coast is seen from Buderim. ( ABC Sunshine Coast: Jen Nichols )

Bruce Highway at a standstill

Traffic was at a standstill on the Bruce Highway, with some motorists reporting traffic being banked back to Mooloolaba.

The Department of Transport and Main Roads said one southbound lane was closed, and traffic was banked back for about 10 kilometres in each direction.

While traffic has been moving slowly through the area, visibility is reduced.

Queensland Police said the highway remained open at this stage, but the situation would be reassessed throughout the duration of the incident.

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