The CFA says the Kangaroo Ground fire was brought within containment lines on Wednesday and is not immediately threatening communities.
However, residents are being warned the fire has the potential to become dangerous on Friday, with temperatures tipped to exceed 40 degrees and strong winds forecast.
Incident controller Bob Brinkman said crews would keep a close watch on the fire on Thursday afternoon and night.
"Firefighters will continue to work today and tonight on the ground to monitor conditions and prevent any further outbreaks," he said.
"Ideally we are asking residents to stay away from the area tomorrow as this is their safest option."
Information meetings will be held at Warrandyte, North Warrandyte and Panton Hill, while a relief centre will be opened at Eltham Community Centre on Friday morning.
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