The fire was in Franco’s Fish and Chip shop on Summerhall Place in Newington and emergency services were called to the scene during Monday morning.
The Scottish Fire and Rescue have confirmed that they are attending the incident.
Scottish Fire and Rescue Service spokesperson said: "We were alerted at 11.34am on Monday, 8 August to reports of a fire affecting commercial premises and adjoining property on Summerhall Place, Edinburgh.
"Operations Control has mobilised a number of appliances and a height vehicle to the scene, where crews remain in attendance as they work to extinguish the fire."
The residents are waiting to hear if and when they can get back into the building.