People could see the smoke from a great distance.
The fire was noticed about 12.30pm at a warehouse where motorcycle and car parts are stored in Hasip Pee Road, Patong.
Five firetrucks from Patong attended the blaze and took about 20 minutes to extenguish it. Nobody was injured.
Firemen estimated the damage at 300,000 baht. An electrical fault has been blamed.
Today's blaze followed another in southern Phuket yesterday that razed part of a Burmese workers' camp and caused about 200,000 baht in damage.