Nine-week-old baby girl pulled to safety after mother lights lantern on NSW balcony

A nine-week-old baby girl is recovering in a NSW hospital after she was injured in a house fire that started when her mother lit a lantern.

The baby, Molly, her 30-year-old mother Laura and 32-year-old aunt Paula were all injured in the blaze.

Brave neighbours pulled the trio to safety as flames tore through the home at North Arm Cove.

“It is pretty horrific to see a child like that,” neighbour Rebecca Kraznaric said.

"She was quite badly burnt, tried to cut off her clothes, tried to take the nappy off, I was terrified, absolutely terrified,” she said.

An off-duty paramedic who lived nearby provided first aid before emergency services arrived.

The baby girl remains in a stable condition in Westmead Children's Hospital while her mother is in Royal North Shore Hospital with burns to her body.