The large bushfire at Currowan has been down-graded from emergency to watch and act alert level but it remains uncontained.
The Princes Highway is now closed between Burrill Lake and North Batemans Bay.
The blaze did jump the highway just north of East Lynne overnight although Greg Allen from the RFS said fire activity has decreased.
"Although winds across the fire ground were still gusty at times they have moderated overnight and through this morning so the alert level was reduced.
"We are advising those residents particularly between Bawley Point and North Durras to monitor conditions realising that later today when temperatures rise and the winds pick up there could be a change in conditions so it's very important to know what you'll do if that does occur," he said.
The fire has burnt out almost 25 thousand hectares.
Air tankers have been trying to protect properties around Pretty Beach and Kioloa.
A very high fire danger is in place for the Illawarra and Shoalhaven today.
Images: RFS NSW and RFS Shoalhaven Heads