A fire near a semi-permanent campsite at Wharewaka Point, near Taupō, came close to houses before being extinguished.
Fire and Emergency responded to the fire shortly after 3pm on Monday afternoon.
The fire consumed about 400 square metres of scrub near Wharewaka Point, in Five Mile Bay, as hundreds of beach-goers watched on.
Houses on the top of the bank appeared unscathed by the blaze while fire fighters could be seen hosing down the smouldering patch of scrub, when the Waikato Herald arrived.
Earlier, smoke could be seen billowing up from the southern suburb of Taupō.