The fire, which is on the Old Hume Highway at Isedale Road, is affecting traffic in both directions.

Lights are flashing yellow, and alternating (stop/slow) traffic conditions are in place.

Braemar resident Taylor Rayne Jones was shocked to see haze surrounding her house.

"I was doing my homework inside and I looked out my window and all I could see was haze," Ms Rayne Jones said.

"I questioned myself to what it was, and then I thought maybe the fire was closer than I thought. I went outside to check on my dogs and all I could smell was smoke.

"I looked down the road and there is the antique place on fire."

"My first reaction was how and what happened?" Ms Rayne Jones said.

"He does have a lot of antiques around, has a fire place and lights candles, so it wouldn't surprise me if something has caught ablaze.

"The fire fighters came along with the police, I'm in quite a shock."

Motorists are advised to exercise caution and reduce their speed.