A popular Sydney pub has gone up in flames and caused all light rail services to be halted.

Emergency services received reports of a fire in the roof of the Dove and Olive on Devonshire St in Surry Hills about 1.30pm on Tuesday.

Watch the video above: Popular Sydney pub goes up in flames

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Footage from the scene shows smoke billowing out of the pub’s roof while festively dressed locals were forced behind police tape as firefighters battled the blaze.

NSW Fire and Rescue told 7NEWS.com.au there are no reports of any injuries and a local evacuation order was made.

The fire has since been extinguished, however firefighters remain at the scene to clear the building of smoke and make sure there are no remaining embers.

The pub is situated alongside a light rail line which has led to all services between Central and Moore Park being cancelled to allow for emergency services to deal with the blaze.

Services remain cancelled while firefighters undertake checks on damages to the Dove and Olive.

There is currently no indication as to what started the fire, but police do not believe it to be suspicious.

“L2 and L3 light rail services continue to run between Central and Circular Quay, and between Moore Park and Randwick/Kingsford,” Transport for NSW said.

The Dove and Olive in Surry Hills ablaze. Credit: Reddit

“Passengers are advised to make alternative travel arrangements.“Passengers are also advised to allow extra travel time, listen to announcements and check information displays for service updates.”