At around 3.30am, over 35 residents called 000 to report a house on fire on Knowles Ave, Bondi.
One nearby neighbour Sandy Lay, used a pot plant to smash a window to the property to help rescue the residents who were disorientated and trapped inside by the thick smoke.
The two residents escaped with the assistance of Sandy without injury, however their cat was found deceased inside their home.
The home was extensively damaged and neighbours said they had only finished their renovations a year ago.
Fire crews saved nearby properties which were under direct threat by flames and smoke.
Smoke detectors were fitted to the home, and were activated.
Police and Fire crews are investigating the cause of the blaze.