NSW Rural Fire Service (RFS) crews and aircraft were fighting a fire threatening about 15 properties in the Goonoo State Forest on Thursday.
Mid-morning RFS spokeswoman Angela Burford said the fire "three or four kilometres north of Elong Elong has just come out to the south-east of the forest".
She said there were 15 properties in the "immediate proximity of the fire edge".
"Firefighters assisted by aircraft are still working to slow the progression of it," Ms Burford said.
A lightning strike may have started the fire at 12.39pm on Wednesday.
"It was elevated to a watch and act alert level yesterday (Wednesday) indicating that there was a heightened level of threat and people were asked to monitor the conditions and enact their bushfire survival plans," Ms Burford said.
"It has been brought back down to an advice level."
Ms Burford said about 15 trucks and 30 to 40 RFS volunteers along with "paid firefighters from National Parks" had been deployed on Thursday morning.
She said they were being assisted by aircraft including the 737 large air tankers.
The fire had spread across 1361 hectares.