Authorities told residents in towns surrounding Bunyip State Forest to evacuate their properties, as more than 300 firefighters worked to contain the the fast moving blaze.
Aircraft have carried out water bombing operations in the area in an effort to extinguish the fire which was recorded to be about 3,400 hectares in size.
The fire was believed to have been ignited by multiple lightning strikes on March 1.
Weather forecasters have said that it has been the hottest start to autumn in the region in 30 years.