Multiple brigades from the NSW RFS Southern Highlands and Fire & Rescue NSW responded to reports of a fire in a Recycling facility in Picton shortly after midnight.
It took firefighters a number of hours to bring the fire under control.
Due to the types of materials burning, specialist firefighters from FRNSW Hazardous Materials team assessed the smoke and runoff which bought back neutral readings.
Smoke from this fire may linger overnight and throughout the morning.
Residents nearby have been advised to close windows and doors and turn off air conditioners.