The blaze is burning in Trawool, near the Goulburn Valley Highway, prompting urgent warnings from authorities, News.Az reports, citing Australian media.
An emergency alert issued at 4 p.m. advised residents in parts of Kerrisdale, Tallarook and Trawool that it was too late to leave, as the fire moved in a south-westerly direction toward Fairview Road and extending to West Falls Road.
A broader Watch and Act warning was also issued for communities further south in Kerrisdale and Tallarook, as well as Strath Creek and Reedy Creek. Residents in those areas were urged to leave immediately ahead of a forecast wind change expected between 6 p.m. and 8 p.m., which could worsen fire conditions.
The State Control Centre's David Nugent said the fire was burning in steep terrain.
"It's quite tricky country, a mix of sort of forested and sort of cleared area," Mr Nugent told ABC Radio Melbourne at about 2:30pm.
He said there were some homes near the blaze and burning embers were being carried by strong winds, which are expected to turn south-westerly this evening.
Firefighters are now racing to build containment lines on the eastern and north-eastern side of the fire ahead of the wind change.
"We've got a few hours this afternoon that we'll be trying really hard to make sure we stop the spread of this fire ... so when the wind turns around it doesn't create a big, long new front for us," Mr Nugent said.
Clive lives in Strath Creek and has told ABC Radio Melbourne he can see the fire from his property.
"A lot of it's just smoke because of where it is … because it's in the Tallarook, which is a forest, it's not a great place for this fire to be burning," he said.
"We all know things can change pretty quickly."
Murrindindi Shire Mayor and CFA volunteer Damien Gallagher said locals who had evacuated from Strath Creek were gathering at a recreation reserve in Yea.
"This is a community that just very, very recently — last couple of days — has gone into recovery mode from the Longwood bushfire," he said.
He thanked the community for again rallying during an emergency to support each other, but warned the town of Yea would need to monitor the fire when the wind changes direction.
The Department of Transport said it was monitoring the fire as it burns close to the Goulburn Valley Highway.
The highway remained open at 3pm, but a spokesperson said it could close depending on the fire's movement.
Drivers were being urged to instead use the nearby Hume Freeway.
