FIRE tore through the Tandoori Oven restaurant in Bakery Hill this morning.
The blaze broke out just after 3am, causing substantial damage to the inside of the restaurant.
Fire investigators and police are currently on scene investigating the damage and are trying to determine the cause of the fire.
Six CFA crews fought to extinguish the fire at the restaurant, which is located next to Bakery Hill McDonalds.
Ballarat City Fire Brigade senior station officer Neville Collins said the building was "well alight" when initial crews arrived on scene.
"It had the potential to take out more shops than what it did because they are all adjoining," Mr Collins said.
"We managed to confine it mainly to the kitchen area and prevent it spreading to rapidly."
Crews remained on scene for about 45 minutes.
Units from Ballarat City, Ballarat, Wendouree and Sebastopol attended the fire.