More than 120 firefighters plus water-bombing aircraft spent Friday afternoon battling a blaze at Pretty Beach and Lobster Beach, near Gosford, after it jumped containment lines.
It has since burnt over 90 hectares of bushland.
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At least 20 homes along High View Road were evacuated, as flames fanned by gusty winds headed towards their properties.
Rural Fire Service (RFS) spokesman Brendan Doyle said no houses were lost but two timber decks were damaged.
"The fire was literally on the doorsteps of some properties," he told AAP on Saturday.
Mr Doyle said the onset of cooler temperatures and easing winds overnight had allowed firefighters to begin critical back-burning and water-bombing operations to protect the homes in the area.
"With the favourable and easing weather conditions, we are getting the upperhand," Mr Doyle said.
"But we are still a little bit off containing the fire and we are hopeful that will occur sometime today."
Although the threat of the fire was downgraded on Friday evening, the RFS has urged residents to remain on alert and avoid any unnecessary travel to the area.
More than 30 fires were burning across the state on Friday, including at Wyee, north of Gosford, where a fire that initially broke out on Thursday reignited on Friday.
