Flames have engulfed the Cloverlea Tavern in Palmerston North and closed nearby roads as giant plumes of smoke pour into the sky.
A police spokesperson said a building fire was reported at 2.15pm and road closures are in place near Tremaine Ave in Highbury while emergency services respond.
"Diversions are in place, motorists are advised to avoid the area, seek alternate routes and expect delays".
Two patrons, Jahlon Governor and his father, told 1News they were inside the tavern when the fire began.
"I'm not sure [what happened], we just heard the alarm go off and seen smoke coming out of the kitchen so we went outside," Governor said.
"My dad had to run back inside to go in the pokie room to check if anyone was in there and had to tell a lady to come out as she didn't believe anything was going on. But we all got out safe!"
The Cloverlea Tavern posted to social media about the fire, thanking the "speedy" actions of those inside the tavern at the time.
In an update just before 5pm, a Fire and Emergency New Zealand spokesperson said there are currently eight crews in attendance and they will remain at the scene well into the evening, working on fully extinguishing the fire and dampening hotspots.
"Crews also extinguished a power box that was on fire, which was related to the incident," FENZ said.
"The public are being asked to avoid the area to allow emergency services to carry out operations."
FENZ said fire investigators are at the scene and an investigation into the cause of the fire is underway.
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