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Firefighters are tackling a major blaze at the Taynuilt Inn hotel on the A85.
The village primary school and early learning centre has shut for today and the community hall has opened up for anyone needing shelter.
Villagers have been experiencing low water pressure or no supply at all as fire crews fight the flames.
It is understood no one was hurt in the drama that was first reported to Scottish Fire and Rescue at 5.07am.
Four fire engines from Oban and Inveraray are at the scene as crews. Flames were seen shooting through the hotel roof.
On social media there are reports that the middle and the back of the hotel now look completely destroyed.
The road is still closed in both directions with drivers advised to use the signed diversion route . Traffic Scotland says the duration of the closure is unknown at this time.
Dalavich, Glasgow and Dalmally bus services are severely disrupted due to the road closure.
The Brander Lodge has opened to offer hot drinks to anyone in the traffic as well as residents and staff of Taynuilt Inn and a guesthouse in Dalmally is offering two rooms for free tonight to anyone needing to relocate after being affected by the hotel blaze.
Caption: Emergency services at the scene of the blaze at Taynuilt Inn hotel
NO_T39 Taynuilt hotel fire Martin Stewart