Heavy smoke has blanketed the centre of Byron Bay today, as a major fire at a bike shop triggered widespread disruption and brought traffic to a standstill.

The blaze broke out about 1pm on Thursday, April 16, at Freedom Machine Byron Bay, a bicycle rental business on Jonson Street.

Dark grey smoke was seen billowing through the CBD as firefighters worked to contain the fire, with up to six trucks and around 20 personnel on scene.

Diversions in place

Authorities quickly shut down parts of the town centre, with traffic diversions established and motorists urged to avoid the area.

At about 1.30pm, police were advising people to stay clear of central Byron as emergency crews continued their response.

Fire and Rescue NSW confirmed crews were working to bring the blaze under control, with the operation expected to continue into the evening.

The thick smoke from the blaze was visible blocks away

Main Image: Firefighters get to work trying to control the blaze (Photo: Unofficial Big Rob/Facebook)

Explosion fears

Witnesses near the scene reported hearing multiple popping sounds as the fire took hold.

Some believed the noises may have been caused by exploding e-bike batteries inside the building, though this has not been officially confirmed.

Police and NSW Ambulance are also in attendance.

All staff from the business were safely evacuated, but initial reports suggested uncertainty about whether residents in units above the shop had been accounted for.