Residents in the area have been advised to keep doors and windows closed as smoke from the incident blows over the town centre. The Critical Control Centre of the Cornwall Fire Service received a call at around 10.23pm on Saturday night.
Videos and photos taken by residents nearby and show smoke billowing across the sky while flames can be seen from the roof of the property.
A spokesperson for Cornwall Fire and Rescue service said: “At 10.23pm our Critical Control Centre received a call to a property fire in Newquay, initially two fire appliances and an officer were mobilised.
“The Critical Control Centre continued to receive 999 calls and information being gathered suggested a well-developed fire.
“The Control Room Supervisor increased the number of appliances to three.
“On arrival the incident commander quickly requested an additional appliance and the aerial ladder platform.”
The cause of the fire is not known yet.