Fire has ripped through a block of units in The Hill overnight, leaving one person in hospital.
The blaze broke out in a two-storey public housing complex in Newcomen Street just before 8:30pm, destroying one unit and damaging several others.
Firefighters rescued several people, after finding them hanging out the window due to the thick smoke.
"All I heard was someone yelling fire, fire, fire! I went outside the stairwell and the place was full of smoke," resident Lars Tryk told Seven News.
A woman was taken to John Hunter Hospital suffering smoke inhalation and a cut to her hand.
The fire is being treated as suspicious, and is believed to have started from an oven deliberately being left on.
A 30 year old woman was arrested at the scene for unrelated matters, including breaching an AVO.