Close to 150 firefighters are still working to contain a blaze that threatened homes in the Port Stephens area, north of Newcastle.
Dozens of crews remained on the fireground on Saturday to fight the blaze that has burnt through 1600 hectares.
Winds of more than 70km/h fanned the blaze and grounded water bombing aircraft temporarily on Friday, but conditions eased through Saturday, allowing firefighters to gain the upper hand.
However gusty winds led to some flare-ups on the northern flank of the fire, according to the Rural Fire Service.
Firefighters hope to have the blaze, which threatened a dozen homes on Friday, contained by Sunday or Monday.
The NSW RFS says those in the area will notice increased smoke and fire activity when backburning occurs.
The Far North Coast and the Greater Hunter each have a "very high" fire danger rating while the rest of the state and the ACT falls within the categories of "high" or "low-moderate".
A severe weather warning for those in NSW's Illawarra, South Coast, Central Tablelands and Southern Tablelands regions has been cancelled by the Bureau of Meteorology.
The SES continues to advise people to keep clear of fallen power lines and beware of fallen trees or road debris.
Any sightings of unattended fires should be reported to triple zero immediately.
