Two homes lost in bushfire burning south-east of Melbourne

At least two homes have been destroyed as a bushfire burns on Victoria's Mornington Peninsula, but the threat of the fire has eased.

The Country Fire Authority has issued a downgraded watch and act warning for people in Crib Point.

An earlier emergency warning, which included the nearby Stony Point and the HMAS Cerberus naval base, has since been cancelled.

Firefighters have stopped the spread of the bushfire in Crib Point, but it still classified as being not yet under control.

In addition to the two lost homes, two sheds and a garage have also been destroyed.

Residents are advised staying indoors is still the safest option, in case conditions change quickly.

"It's still going but we have managed to control the spread of the fire," a State Control Centre spokesman said.

A woman who was unaccounted for has been has been found safely sheltering in a creek in Crib Point.

Smoke from the blaze has drifted across Melbourne's eastern suburbs, creating a thick blanket of haze.

About 130 firefighters, backed by 26 trucks, three water-bombing helicopters and two fixed-wing fire-spotting planes, have battled the fire.

The origin of the fire is not yet known.

HMAS Cerberus is the Royal Australian Navy's primary training facility.

Road Closures:

• Stoney Point Rd and Woolleys Rd

• Lorimer Strand Bay St

• Bay St and Governors Rd

• Colin Parade and Point Rd

• Stoney Point Rd and Disney St

• Glossop St and Disney St

For the latest fire alerts, visit emergency.vic.gov.au.