Camperdown fire: Asbestos particles sent flying during factory blaze

A chilly Sunday morning heated up quickly for residents in Camperdown in Sydney's inner-west as a large fire in an old rundown building, forced them to flee their homes.

Even after the flames were out, the drama was far from over with asbestos particles sent flying around the neighbourhood.

The blaze started at the single-level building on the corner of Australia Street and Elton Lane about 9.30am today. 

Plumes of black smoke and flames could be seen coming from the roof of the building. 

"We were just in bed asleep as we heard all this popping and crackling," a neighbour to the building told 9NEWS. 

"It sounded like fireworks were going off."

"It's on the footpath and it's on the roads and certainly any cars that are close will have to be looked at and cleaned," Fire & Rescue NSW Inspector John McDonough said.

But as the fire was brought under control, there was no relief for stranded residents with the destructive blaze leaving even more problems in its wake.