Huge blaze rips through Hog’s Breath Café in Eumemmerring, near Dandenong in Melbourne

There are fears for the lives of squatters after an inferno ripped through an abandoned café near Dandenong in Melbourne.

Fire crews responded to reports of a blaze at the old Hog’s Breath café on the Princes Hwy, Eumemmerring about 5.50am on Sunday.

WATCH THE VIDEO ABOVE: An abandoned cafe destroyed by fire in Melbourne’s southeast.

The building was “fully involved in flames”, Fire Rescue Victoria (FRV) said, and neighbouring properties including a petrol station were exposed to the fire.

Large amounts of smoke which emanated from the restaurant woke neighbours, who were worried the fire would spread to their homes.

“My daughter was just hugging me,” resident Faith Bonnam told 7NEWS.

“She was so scared, because (of) the smoke, we couldn’t see anything and we couldn’t breathe.”

A community advice warning was issued and the smoke impacted visibility on the highway.

Sixty-six firefighters managed to control the fire within an hour however significant damage was done to the building.

It was too dangerous for crews to enter the charred and unstable structure to search for anyone feared trapped inside, including squatters.

“(It’s been) reported that there were squatters so it’s one of our considerations ... we can’t rule it out,” FRV senior station officer Shaun McRoberts said.

The restaurant has been closed for more than a year but neighbours say they often hear people gathering in the carpark behind the building on Friday and Saturday nights.

“I see a lot of gangs of boys hanging around. What they do I don’t know,” resident Denzil McGavin said.

The fire is being treated as suspicious and its cause is still being investigated.

Anyone with information has been urged to contact Crime Stoppers.