Authorities first issued an emergency warning about 3pm on Tuesday for people to leave the Coles Bay Rd area at Friendly Beaches if safe to do so.
That warning was upgraded to a seek shelter message shortly before 8pm.
"There is an uncontrolled bushfire at Coles Bay Road, Friendly Beaches," the Tasmanian Fire Service said.
"Coles Bay Road, Friendly Beaches is expected to be impacted immediately."
The fire, which is travelling east towards Friendly Beaches from Coles Bay Rd, is about 20km north of the entrance to the picturesque Freycinet National Park.
Aircraft and ground crew were fighting the blaze with conditions expected to worsen during the evening.
Residents and tourists have been told to seek shelter in a safe location, with the fire service warning smoke and ash may make it difficult to see and breathe.
Burning embers may also threaten homes before the main fire arrives.
Swanwick and the town of Coles Bay remained under a "watch and act" alert on Tuesday evening, with people told to avoid the area.
Guests and staff at nearby Freycinet Resort have evacuated, while people have gathered at the designated Coles Bay boat ramp "safe place".
Kristen Floyd from the Devils Corner Winery at Apslawn told the ABC the area had been blanketed by thick smoke.
"It's quite windy here as well which is making it a lot scarier," she said.
Fire service acting regional chief Greg Butters said weather conditions were expected to ease on Tuesday evening, with the possibility of rain.
"It is unusual for the bushfire season to start this early, it is purely because of the dry conditions over winter," he said.
Police have closed Coles Bay Rd from the Tasman Highway to Swanwick Road.
10°C