CFA firefighters were called to a structure fire on Nugent Street in Monbulk at 9.26pm on Tuesday night.
Seven CFA units from Monbulk, Olinda, Kallista - The Patch and District 13 HQ were on scene.
Crews arrived to find the single-storey brick dwelling well alight.
Parts of the structure have collapsed as a result of the fire.
Ambulance Victoria and Victoria Police were also on scene.
The incident was listed as under control at 9.49pm and a stop was issued at 10.58pm.
The fire will be investigated by forensics and fire investigators in the morning, Wednesday, 29 July.