Cardiff Road was opened at 13.30 and the fire service left just before 2pm. Council workers are now securing the building.
The South Wales Fire and Rescue Service are now damping down the blaze on Cardiff Road in Caerphilly.
The cause of the fire has been recorded as accidental.
Another two fire engines, one from Pontypridd and the other from Bargoed, are now also on the scene.
A hydraulic pump and a water bowser are also present – machines that are usually used when there is difficulty getting water into elevated areas.
Residents are being advised by police to close their windows due to the level of smoke.
FIRE crews are attending a blaze in Caerphilly town centre this morning.
A two-storey building on Cardiff Road was reported to be on fire just after 10am, and police have since closed the road from the Wetherspoons junction to the traffic lights.
Two fire engines from Caerphilly, and another from Whitchurch in Cardiff, are still in attendance. Firefighters are checking adjacent properties to see the full extent of the damage, but it seems no-one was injured in the incident.
Danielle Stephens, manager of The Malcolm Uphill pub on Cardiff Road, said: “They’ve completely closed the centre off so it seems quite a bad one.
“It was a clothes shop next to Subway and it seemed to start round the back but there’s smoke coming out the front now. There’s a big crane here and they’re pumping water into the building. There are loads of people on the street, so I don’t know if they’ve evacuated the surrounding building or not.”
The property which, according to eyewitnesses, has been “burnt out” on Cardiff Road this morning, was the clothes shop, Phaze.
Pictures of the blaze on Cardiff Road from Leanne Fuller: