The fire started on a balcony onboard the Pacific Adventure cruise ship, off the New South Wales coast in Australia.
Passengers were forced to evacuate their cabins at about 3:30 in the morning, according to reports from 9News.
Footage of the incident showed the fire spreading and tired guests were pictured gathered following the evacuation.
A spokesperson for P&O Cruises Australia said the fire was extinguished quickly and the cause has yet to be determined.
The statement said: “This fire activated our emergency response procedures including a full muster of guests and crew and we thank everyone on board for their cooperation.
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“There are no reports of injury. The extent of the damage and the cause of the fire are yet to be fully determined and remain under investigation.”
The ship was thought to be in the middle of a three day cruise around the Sydney area of Australia.
It is thought to have been carrying over 3,000 guests and over 1,000 crew and was scheduled to return on Tuesday.