The fire ranging on Keith St. Emergency services have yet to confirm if people have been injured in the blaze.
Black smoke is billowing across Palmerston North due to a large garage fire.
A police spokeswoman said there was a car inside the garage on Keith St, near Mihaere and Cessna roads, that was also on fire.
They were notified of the blaze at 11.55am. Traffic has been blocked at Kaimanawa St and the surrounding area.
Victoria Crafar was close by, and heard loud bangs that sounded like explosions.
She said there was black noxious smoke that was only getting worse and smelt like copious amounts of plastic burning.
More to come