The emergency warning was first issued for Dolphin Sands East on Tuesday afternoon, with the fire still contained to the peninsula as of Tuesday night.

Tasmania Fire Service advises that the fire will but Dolphin Sands East at risk until it as able to be controlled, and the safest thing to do is leave before the fire hits. Embers, smoke and ash could threaten homes before the main fire.

There is currently no evacuation centre activated, though residents were being evacuated to the nearby Swansea Backpackers last night.

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Residents unable to leave are advised to seek a large area, clear of any vegetation. Only strongly defended homes, made to be bushfire proof in severe conditions, can protect life, the TFS alert states.

Smoke alerts are also in place for Dolphin Sands, Swanwick, and Coles Bay.

Multiple fire crews were on the scene last night including four light and six heavy tankers, two medium tankers, along with support from the State Emergency Service, Parks and Wildlife and Sustainable Timbers.

Residents are advised to listen to ABC local radio or visit the TFS website for the latest updates.