Firefighters are currently battling a factory fire in Jersey Road at Bayswater.
CFA and FRV crews were called to the scene at 12.38am and found the 20 by 50 metre factory well alight.
The factory is believed to contain recycling waste materials.
CFA issued an Advice message at 1.51am and then a Watch and Act message at 2.19am due to smoke in the area.
Anyone located in the area bordered by the Dandenong Creek, Dorset Road and Malvern Street and Scoresby Road in Bayswater should take shelter indoors immediately.
Residents in that area are advised to close all exterior doors and windows, close vents and ensure heating and cooling systems are turned off.
Around 24 CFA and FRV units are on scene with several other supporting agencies.
The fire was brought under control at 2.25am but has not yet been declared safe.
Firefighters are expected to remain on scene for several hours.
The cause of the fire will be investigated in daylight.