UPDATE (7:56 a.m. Friday) - CAL FIRE reports the Grade Fire was 90% contained as of Friday morning. Crews are continuing to clean up and strengthen containment lines.
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UPDATE (7:59 a.m. Thursday) - The Grade Fire is now 45% contained, according to CAL FIRE.
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UPDATE (6:18 p.m.) - CAL FIRE reports that forward progress of the Grade Fire has been stopped after it burned a revised 33 acres. It is 27% contained.
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UPDATE (5:34 p.m.) - CAL FIRE reports that the Grade Fire, which broke out Wednesday afternoon on the Cuesta Grade, is 20% contained, with 33 acres burned.
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UPDATE (4:29 p.m.) - The evacuation order for Zone LPF-004 has been lifted.
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UPDATE (2:44 p.m.) - Mandatory evacuations are in effect for Zone LPF-004 due to the Grade Fire.

The affected area includes the area north of Mount Lowe Road, east of Highway 101, south of Forest Route 29S04, and west of Burrito Creek Road, according to ReadySLO.org.

CAL FIRE SLO reports the fire has already burned more than 40 acres and has the potential to burn 100 acres.

According to Caltrans, the northbound lanes have been reduced to one lane.
People are asked to avoid the area and take an alternate route if possible.
Vegetation Fire: Units are on scene of a vegetation fire on Cuesta Grade. The fire is over 40 acres burning uphill. Potential for 100 acres. Zone LPF 004 is under a mandatory evacuation. Please avoid the grade if possible. #CuestaFire https://t.co/Fh26aGeCls
— CAL FIRE/San Luis Obispo County Fire Department (@CALFIRE_SLO) September 23, 2026
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ORIGINAL STORY: A car fire is spreading to grass on the top of the Cuesta Grade.
The flames apparently broke out from underneath the vehicle on Highway 101 around 1:45 p.m. Wednesday.
According to the CHP, the flames have spread to the nearby hillside.
Fire crews are currently on scene trying to put out the flames.
Traffic northbound on Highway 101 is backed up. According to the CHP, two lanes of Highway 101 in the area are being temporarily closed.
This is a developing story; we will have updates as we get them.