Residents living near Octopus at Havelet have been urged to keep their doors and windows closed as people wake up to the news that the restaurant is on fire.
The blaze started early this morning, with the emergency services arriving on the scene shortly after 04:00.
The Guernsey Fire and Rescue Service, Guernsey Police, and Guernsey Civil Protection Volunteers all remain on the scene with flames visible at 07:30.
There have been no reports of any injuries at the time of writing.
Photographs shared to social media by people in the area earlier this morning show tall columns of bright orange flames with billowing smoke.
The fire and rescue service has described it as a "structure fire".
All roads around La Vallette - including down to the Bathing Pools, the Val des Terres, and Havelet are closed.
A spokesperson for Bailiwick Law Enforcement asked everyone to "please find alternative routes".
A subsequent message said: "Due to the amount of smoke that is coming from the incident at Octopus, we would recommend that all residents in the nearby area keep all doors and windows closed for their own comfort and safety."
Pictured: The above screenshot is from a video shared to Guernsey People Have Your Say by Barbara Merrien.
If you have any photos or video footage from the Octopus fire to share with other readers please send them to editor@bailiwickexpress.com
Pictured top: By Gerry Loughlin.
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