More than 50 firefighters are tackling a blaze in a number of outbuildings and a bungalow.
A woman was treated at the scene for shock and was discharged without any further injuries.
However neighbours report that animals may have died in the blaze, on Watton Road.
There are six fire engines, a water carrier and an aerial ladder platform at the site and firefighters continue to battle the blaze with hose reel jets.
Smoke can be seen pouring into the sky from the Shipdham area for miles.
Seven homes have also have their power shut off for 'safety reasons'.
A spokesperson from UK Power Networks said: 'UK Power Networks engineers have isolated electricity supplies to seven properties for safety reasons while fire crews deal with a fire in Shipdham, Norfolk. We will restore power supplies as soon as we can when it is safe to do so.'
Emergency services were first alerted to the fire by a member of the public, at around 4.30am today.
Ivan Chubbock, who lives close to the site, saw the fire and called 999.
He told BBC Radio Norfolk that he believed the outdoor buildings were used to restore cars.
Fire, police and the ambulance service rushed to the site.
A hazardous area response team also attended.
The incident leader, for Norfolk Fire Service, told BBC Norfolk that the fire is believed to have been started by an bonfire - however this has not been confirmed.
Police closed the A1075 at Shipdham at around 4.55am and are advising people to avoid the area.
The road is closed between the Long Road junction and the Old Post Office Street junction.
Local diversions are in place, however there is slow moving traffic and queues travelling from Watton towards Dereham.
A fire commander at the scene, said: 'I believe it will be some time before the road can be reopened.'
KonectBus has warned its users that delays are being experienced. The company tweeted: 'Route 11 update: Delays experienced in Shipdham due to road closure as a result of house fire. Apologies for any inconvenience caused.'
It was initially believed the road would be closed for around three hours.
- If you have any pictures of the blaze, email them to jemma.walker@archant.co.uk
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