At around 6pm eye witnesses reported heavy smoke engulfing a building on Bega Street in Tathra.
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The building accommodates three businesses; Bliss Hair Stylists, Tathra Laundrette and Tathra Cellars Little Bottler.
Witnesses at the scene observe the laundromat to be at the centre of the blaze.
A Spokesman from NSW Fire and Rescue said the call was received at 17.52, he said two trucks were dispatched and assistance was also given by the local Rural Fire Service Brigade.
The Spokesman confirmed that it was the Tathra Laundromat on fire.
At 18.36 Crews were fighting the fire which was ongoing.