The candle had been lit in the Lawrence St, Mornington, home after a power cut caused by a car crash in the area on Tuesday night, but the occupants fell asleep as the flame continued, Roslyn Fire Station Officer Jake Wansink said.
A Fire and Emergency New Zealand spokesman said crews from Lookout Point and Roslyn were called to the fire at 4.30am yesterday.
They found a small fire in a bedroom and were at the scene until 5.20am.
Two people were taken to hospital in a moderate condition for smoke inhalation.
Mr Wansink said the fire reinforced the importance of people being vigilant when using candles.
He suggested candles should be contained within a candle holder or on a plate.
The incident also reinforced the importance of having smoke alarms in bedrooms, Mr Wansink said.
The house had smoke alarms, but not in the bedroom where the fire started, and the home’s occupants woke before alarms sounded.
A motorist who crashed in Elgin Rd was taken to hospital on Tuesday night.
A 47-year-old man veered into a power pole there about 7.20pm, police said.
He hit his head on the airbag.
A blood-alcohol test was taken while he was in hospital.