Residents evacuated from Sydney shop fire

Five people, including three children, have been treated for smoke inhalation after a fire broke out in a building in Sydney's inner west.

A shop and the above residence on New Canterbury Road at Dulwich Hill caught alight just after 8am on Thursday, with seven fire crews responding to the incident.

Four people were evacuated from the building, while several neighbouring residents had to be treated for smoke inhalation on the scene.

New Canterbury Road is blocked in both directions between Marrickville Road and Herbert Street as firefighters check adjoining shops for potential fire spreads.

Meanwhile, further west in Auburn, one person has suffered hand burns and three others have suffered smoke inhalation at a house fire.

The blaze broke out in the back of a single-level home at about 4am on Thursday with NSW firefighters saying it's unknown what caused the fire at this stage.