Police and fire investigators are waiting to examine the scene of a fire which destroyed two holiday homes in Byron Bay overnight.
Emergency services were called to a fire at a home shortly before 7.30pm and found the building, in Brownell Drive, Wategos Beach, well alight.
Surrounding homes were evacuated as a precaution.
About 9.30pm the prevailing wind changed direction and a house next door also caught alight.
Despite efforts, both homes were destroyed by the blaze.
Police have been told the homes have a combined value of $5 million.
A third home in the street also suffered minor damage. No homes were occupied at the time.
The cause of the fire is still to be determined.
A guard was placed on the site overnight and, if safe, the scene will be examined later today.