Chillies drying in a Melbourne resident's backyard led to a chemical emergency last night.

An ambulance was called to a home in Cranbourne, in Melbourne's south-east, after two men were reported to be coughing and having difficulty breathing.

At one stage, up to 10 people in the area were complaining of feeling dizzy and nauseated.

The area was doorknocked and it emerged someone was drying out strong chillies in their backyard and that was the source of the fumes.

It was a still evening and homes up to 150 metres away were affected by the strong chilli smell.