The Commercial Hotel fire is under control.
A Country Fire Authority spokesman said crews brought the blaze under control at 8.07pm, after working on it for more than an hour.
Hotel owner Gary Jelly said 30 to 40 people were in the pub when the fire started.
“We were inside and I had finished. Tim, my right-hand man, was serving,” he said.
“We both live upstairs.
“A fire started in the top of the roof. We smelt something and noticed a bit of smoke coming through the fans.
“Within 10 minutes it was basically alight.
‘The main thing is everyone got out.”
Mr Jelly has owned the pub for about six years.
Nearby business Rockin Robin’s Food Bar posted a message on its Facebook page to say the business is closed because of the fire.
EARLIER – 7.11PM
AT least 10 fire trucks are responding to a blaze at Horsham’s Commercial Hotel.
A Country Fire Authority spokesman said the authority received a call at 6.49pm on Sunday to say the building in Wilson Street was alight.
The fire is not yet under control.
Wilson Street is closed between Darlot Street and Firebrace Street.
A man who was inside the hotel when the fire started said he had smelled something burning before learning there was a fire.
"We were in the dining room and smelt something burning for about half an hour and we were taking about it,” he said.
“As we left we could see flames through the skylight in the kitchen."