Crews from Aberdeen, Hoquiam have been fighting the blaze, according to officials with the state Department of Natural Resources.
Witnesses say the wildfire is burning through logs and dried-up vegetation in the dunes that ring the coastal community of homes, hotels and tourism-related businesses.
One local fire official said the 30-acre blaze is the largest wildfire he has ever seen in his years at Ocean Shores.
The local fire department said it actually began Tuesday afternoon when a motorist who was four-wheeling in the dunes somehow managed to catch his truck on fire. The truck was a total loss and the man was taken to a local hospital with burns to his feet.
The blaze spread from there and fire crews were dispatched to the scene from Aberdeen, Hoquiam, the Department of Natural Resources and other local units.
One home was damaged when its siding caught fire, but crews so far have kept the blaze from reaching other structures.
Smoke from the blaze is visible from Highway 109 to the north and Highway 105 to the south, DNR officials said.
Boaters at a marina at the south end of Ocean Shores said the smoke is very thick there.
This is a developing news story. More information will be posted as it becomes available.