Vehicle and PMVs were turned back from the main entry road into the village with both ends of the entry junctions blocked off.
Fire trucks were observed on sight trying to contain the fire.
Loop PNG managed to get some information from St John Ambulance staff that were on site at the village.
Currently seven patients have been treated for deep lacerations, smoke inhalation and dehydration.
Chief Fire Officer for St John Ambulance, Matt Cannon, has warned Moresby town residents to also avoid the Hanuabada area.
Cannon says that unnecessary traffic will affect the ability of emergency services to move in and out of the area.
Police and fire services are yet to release statements into the incident.
More updates to follow.