Rescue services from Borlänge and Falun were called to an address in central Borlänge on Friday.
Callers must have seen heavy black smoke from the building
The fire must have occurred in a villa shortly after 21.00 and several police patrols are on site.
"A life-saving effort"
According to the rescue service's initial information, the fire must have started in the kitchen.
The rescue service fears that people may remain in the building.
- It is about a single-storey villa with basement.
We have started a life-saving operation where we go in and look for people, says Johan Nordin, internal commander.
Two picked up by smoke divers
According to an update from the police at 21.50, two people have been taken out of the property by smoke divers.
Emergency care is in progress at the site.
Rescue services must also have searched for a third person in the building.
- We are looking but have not found any more yet.
The fire is basically completely extinguished.
The villa is not completely destroyed but we have been able to save parts, says Johan Nordin, internal commander.