CAL FIRE crews have the fire 50% contained.
The blaze has engulfed more than 400 acres near the highway and Avila Beach Drive.
At one point, the flames threatened several homes and structures, and an evacuation order was issued.
Planes and helicopters are helping to attack the fire from the air, while fire crews battle it from the ground.
So far, there are no reports of damage to the structures, and evacuation orders have been lifted for Pismo Heights.
The cause of the fire is under investigation.