The fire started on the 9th floor of the Lighthouse high rise in the trendy Northern Quarter of Manchester city centre.
Manchester Fire sent 12 fire engines to tackle the inferno that tore through the 12-storey tower block on Joiner Street.
One casualty has been taken to hospital after suffering smoke inhalation.
In a chilling echo of the Grenfell Tower disaster, dramatic eyewitness footage shows raging flames engulfing the building and spreading rapidly to higher floors.
In one heart-stopping video, a man emerges on the 9th floor balcony and apparently attempts to gain access to a neighbouring flat.
As flames fan out onto the balcony, he appears to use force in a frantic attempt to break down a partition wall dividing the two flats.
Within seconds, another person, who was apparently trapped in the flat, escapes through the wall with the help of the man.
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The fire service urged locals to "keep windows and doors shut" and avoid the area before the blaze was brought under control around 6pm.
Greater Manchester Police closed roads around the apartment block, close to Afflecks Palace indoor market, as fire crew dealt with the fire.
The building was fully evacuated despite the fire spreading to several floors.
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In a statement Greater Manchester Fire and Rescue Service said: "The fire had spread to multiple floors but we have things well under control here.
"Firefighters along with colleagues from the Police and Ambulance service have done an amazing job to tackle this difficult incident!"
Eyewintess Rachel Fox, who lives on nearby Tib Street, told Daily Star Online she did not think anyone was trapped inside as "fire fighters were fast".
She said: "Crowds have been moved on and the road my apartment is on has been shut.
"I can see the building from my flat."
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Stunned eyewitnesses expressed sympathy for residents amid "horrible scenes" as plumes of thick black smoke shot into the sky.
Crowds of onlookers gathered in the streets below as the fire engulfed external balconies on the building.
One wrote: "Arghhh, this fire in the Northern Quarter looks awful. Desperate to know everyone made it out ok. #Manchester."
A second posted: "Pray that everyone are okay in the fire in Manchester. Horrible scenes."
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“Arghhh, this fire in the Northern Quarter looks awful. ”
Eyewitness
The Lighthouse – the tallest residential tower block in the Northern Quarter – was completed in 2008.
A two bedroom apartment in the building can be bought for around £175,000 to £180,000.
The fire comes just six months after a fire at the 24-storey Grenfell Tower block in North Kensington, killing 70 people.