Emergency services were called to the tunnel on the Milford Road (SH 94) about 3.45pm today after a vehicle caught fire inside it. However, no one was injured.
A Fire and Emergency spokesman said three crews from Te Anau and two from Milford Sound attended and the tunnel was evacuated and then closed.
The Homer Tunnel is the only road access to Milford Sound, a popular tourist destination.
About 500 tourists were left stranded there earlier in the day and were expected back in Te Anau later tonight.
The Otago Daily Times was told tour operators put on free tea, coffee and food on tour operators' boats or in the terminal building while waiting for the tunnel to reopen.
Milford Sound Tourism staff could not be contacted, but a Real Journeys spokeswoman said the response had gone "as smoothly as it could".
"Everyone was happy and obviously they'll be very happy when they can make it home."
NZTA advised road users to expect short delays on Wednesday.
- Staff reporters