A brush fire was reported along Highway 101 near Cottage Grove Avenue and Bath Street around 1:54 p.m Saturday.
An official with the Santa Barbara City Fire Department said there was a homeless encampment nearby that burnt down in the fire.
Propane tanks were also close to the flames, but did not catch fire, said the official.
The official also said the Santa Barbara City Fire Department was able to extinguish the fire quickly.
An official with the Santa Barbara Police Department said police were at the scene controlling traffic.
There is no word yet on what caused the fire.