Fourteen residents were evacuated and one taken to hospital after a fire in a restaurant below their flats.
The blaze began in the Italian restaurant, Pomodoro e Mozzarella, on Cornfield Terrace, Eastbourne, and is believed to have started in the laundry room.
Emergency services were called at 3.15am yesterday and about 40 firefighters from Eastbourne, Pevensey, Hailsham and Seaford were needed to deal with the fire. By 5pm yesterday, fire investigators were still examining the scene.
The restaurant occupies the bottom floor of a six-storey terraced building and the top five floors are all residential.
Fire crews wearing breathing apparatus had to enter the building and check every flat, leading residents to safety via the fire exits.
Many residents were already aware something was wrong as the smoke alarms were sounding and the corridors were filled with smoke. But firefighters banging on the door alerted more heavy sleepers.
Robert Southouse lives on the first floor directly above the damaged restaurant. He said: "The smoke was coming up and it was really black. When you see smoke like that and fire spreading quite rapidly you think you should get out quickly. It was quite serious. "
Pat Marchant, 76, lives next door and was awoken by the firemen and the alarms.
Mrs Marchant said: "My cousin was staying with me and the firemen knocked on the door and said, 'Get dressed you have to leave, I will get you out'. He led us through the fire exit out on to the street. When you just wake up you are not really with it.
"I was tired and bewildered. We were a bit like zombies. There was an ambulance outside and one lady went in there because of the smoke but I don't think anyone was hurt."
One person was taken by ambulance to the Eastbourne District General Hospital but their condition was not thought to be serious.
Fire crews put the flames out by 5am but the restaurant, the entrance to the flats, the next door restaurant and the neighbouring bed shop were cordoned off for another five hours while fire investigators examined the scene.
Restaurant co-owner Gianluca Albertoli, 48, was called at 4am and was there most of yesterday.
He said: "Everything was sorted by the time I got here.
"The damage seems to have been contained to one side of the restaurant so I am hoping we can open by the other side by the weekend. This is our busiest week with the tennis. I think the damage is superficial."
Mr Albertoli's other restaurant, the next door La Locanda del Duca, was not damaged and is open as normal.
The cause of the blaze was still under investigation last night.
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