A Lookout Point fire crew was called to the burning Teignmouth St home at 5.40pm and was soon assisted by firefighters from the Central Dunedin and Roslyn stations.
Officer in charge, Murray Little, of Lookout Point, said the rear of the house was ''well involved'' when firefighters arrived.
''Fortunately we were able to contain the fire. It didn't spread any further once we arrived,'' Mr Little said last night.
The occupants were not at home when the fire started, but returned to discover their pet dog had perished in the blaze.
Firefighters removed two 9kg lpg gas cylinders from the home and cooled them down before dampening down parts in the house.
Mr Little said it was not yet known how the fire started.
Fire crews remained on site for at least four hours, making sure all hot spots were dampened down.
No other properties were threatened by the fire, Mr Little said.
