UPDATE 9.20pm:
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An emergency bushfire warning remains in place for Dolphin Sands East.
A Tasmania Fire Service spokeswoman said residents were being evacuated to the nearby Swansea Backpackers.
The fire remains contained to the Dolphin Sands peninsula, but has not yet been contained.
Fire crews located on the Coles Bay side of the peninsula remain on standby.
Weather conditions, including strong easterly winds, are predicted to ease about 10am.
Residents are advised to listen to ABC local radio or visit the TFS website for the latest updates.
EARLIER:
The Tasmania Fire Service has issued an emergency bushfire warning for Dolphin Sands East, with an uncontrolled fire burning at Dolphin Sands Road.
The fire is predicted to put Dolphin Sands East at risk by about 7pm, with residents advised to leave their homes before the fire hits.
A TFS spokeswoman said significant wind in the area was pushing the 56-hectare fire East, with a high number of dwellings in the affected area.
"From what we understand the majority of residents have already left safely," she said.
Multiple fire crews are on the scene including four light and six heavy tankers, two medium tankers, along with support from the State Emergency Service, Parks and Wildlife and Sustainable Timbers.
The TFS has advised the fire danger will be severe, with fires under these conditions uncontrollable and fast moving.
"Embers, smoke and ash falling on Dolphin Sands East could threaten your home earlier than the main fire," the alert says.
"There is an no evacuation centre activated.
"Residents that are unable to leave are to seek a large area, clear of any vegetation.
"Only strongly defended homes, made to be bushfire proof in severe conditions, can protect your life.
"Do not try to travel to the area as the roads could be highly dangerous."
Residents are advised to listen to ABC local radio or visit the TFS website for the latest updates.