The town's 500 residents were told to activate their bushfire plans and monitor the blaze, which had burnt 1200 hectares of land in and around the Mount Buangor State Park.

Department of Sustainability and Environment spokeswoman Natalie Webster said the fire was burning slowly in a south-easterly direction.

''The only damage to private property at the moment is on a blue gum plantation, and some fences have been damaged,'' Ms Webster said.

Ten aircraft were called in to fight the blaze, along with 217 personnel from the DSE and Country Fire Authority.

Ms Webster said four helicopters were dropping retardant to the north of the fire to create a fall-back line, while three CFA strike teams were putting a control line on the southern side of the fire.

The DSE planned burn was ignited at 8pm on Tuesday along Ferntree Falls Road in a bid to reduce fuel in the park, particularly around the Ferntree Falls picnic ground. Around 50,000 hectares of bushland has been burnt so far this year in DSE backburns, with another 40,000 hectares to be completed by next week.