UPDATE (3:30 p.m.) - The fire was first reported around 1:50 p.m.
When firefighters arrived on scene, they say a lot of smoke was coming from the garage so they cut the garage door open.
Fire crews say the garage was completely filled with smoke, but the fire was quickly extinguished.
According to Five Cities Fire, the fire was contained to the garage and the home is in good shape.
At this time, the cause of the fire is not confirmed, but fire officials suspect it was electrical in nature possibly involving a car inside the garage.
Arroyo Grande city building officials are currently evaluating the home.
PG&E is also on scene to make sure gas and electrical components are safe.
Five Cities Fire and Cal Fire San Luis Obispo contained a residential structure fire in Arroyo Grande Sunday afternoon.
The fire broke out in the 200 Block of Tally Ho Street.
According to Five Cities Fire, the fire is contained and no residents were injured.
Crews are checking for spread of the fire.
This is a developing story. It will be updated as more information becomes available.