Whakapapa Village is being evacuated, as fire rips through up to 2000 hectares of vegetation inside the Tongariro National Park.
The fire east of Waimarino is only partly contained, say firefighters.
Fire and Emergency NZ (FENZ) said 36 people who lived in the village were warned earlier on Sunday that they may need to evacuate.
"Those evacuating will make their way to the Central Plateau Emergency Management Centre in National Park and register, so that everyone is accounted for," said FENZ assistant commander Craig Gold. "Those who then need assistance with finding accommodation will be supported by Civil Defence."
Gold said the decision to evacuate the village was made based on the fire's behaviour on Sunday.
"We are erring on the side of caution and getting people out in daylight, after plenty of warning. This way, we have time to make sure that everyone is accounted for during daylight."
A control centre for emergency staff has been set up in the central North Island, as firefighters battle a widespread tussock blaze.
Fifteen helicopters and three fixed-wing aircraft are dropping water over the flames. Fire and Emergency NZ (FENZ) said the aerial units will continue until twilight and then stand down for the night.
Gold said the fire now covered an estimated 1800 hectares and was 20 percent contained.
Trampers, lodges and the Hillary Outdoors Centre have been evacuated, and residents are being advised to keep their pets close and be ready to leave their homes, if necessary.
The Ruapehu District Council said residents should also keep doors and windows closed to minimise their exposure to smoke.
