Fire crews attended the blaze in St Thomas Road at 10.20pm, which sent smoke billowing across the town. Firefighters evacuated 15 people from the property, some whom whom were wearing their dressing gowns.
Appliances from 10 fire stations across the county along with an aerial platform ladder were used to tackle the fire. St Michael's Church opened its doors to provide shelter for those that were evacuated.
A police and fire investigation is underway to determine the cause of the blaze.
Eyewitness Pippa Robson said: “I saw loads of flashing lights and sirens from my window. I looked out and saw some people evacuated safely in dressing gowns.”
A fire spokesman said: “At 22:23hrs our Critical Control Centre received a call to a property fire in Newquay, initially two fire appliances and an officer were mobilised.
“The Critical Control Centre continued to receive 999 calls and information being gathered suggested a well developed fire. The Control Room Supervisor increased the number of appliances to three.“
On arrival the incident commander quickly requested an additional appliance and the aerial ladder platform.
“Six appliances, one aerial ladder platform and two officers were in attendance. We advised members of the public to avoid the area.
“The incident was scaled back at 05:30am to leave three fire appliances and the aerial ladder platform on scene. A Fire Investigation alongside colleagues from the Police will take place."
Newquay Central Cornwall councillor Louis Gardner visited the scene of the fire on Sunday morning. He said: "This was a major incident which involved crews from 10 stations across Cornwall. I cannot praise the hard work and bravery of our fire crews enough.
"It is thanks to their actions that all 15 people in the property are safe and the fire did not spread further. Thank you for everything that our emergency services do. Cornwall Council will be working with affected residents over the coming days. I must also say thank you to St Michael's church who opened their doors to those affected all night."