More than 20 CFA tankers brought a fire under control after it broke out on the slopes of Mount Buninyong on Sunday afternoon.
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Firefighters were first dispatched to the scene following reports of the blaze near the Wallaby Track on the mountain about 3pm.
Police blocked off the area to traffic as CFA crews attacked the flanks of the grass and scrub fire before bringing it under control after it burnt through 1.5 hectares of bushland.
Residents were advised to monitor warnings and to keep the roads clear so emergency services could respond.
Smoke was visible from Ballarat while firefighting aircraft were called in from the airport.
“A helicopter went over,” one witness said.
“We were up the Sovereign Hill lookout – smoke was increasing quickly.”