Firefighters rescued the four children and three adults from the burning property in Saddell Street in Campbeltown at around 4:30am. They were taken to Campbeltown Hospital suffering from smoke inhalation.
The children were released later in the day.
Some 15 firefighters from Strathclyde Fire and Rescue were called to the scene to tackle the blaze.
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Hide AdA fire investigation unit is to working on establishing the cause.