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Update 7:30 p.m.
The fire is currently estimated to be 1.4 hectares in size, crews are at still at the scene.
Fire Information Officer Taylor MacDonald said, "The fire is burning in a steep terrain which is creating a "challenging situation, but so far there has been success on the ground."
It is burning rank two, which is a surface fire with open flame.
The fire is considered out of control and fire crews have been able to get three sides of the fire guarded with hand guards.
Crews are dealing with a grass fire on Greyback Road above Penticton Creek.
Witness Brian Kerluke described it as a small grass fire and said forestry trucks as well as a helicopter have responded to the scene to tend to the fire.
The helicopter is flying over the scene monitoring the blaze.
“It’s hard to estimate how big it is because of how much smoke there is,” said Kerluke. “The wind is coming fairly strong so it's blowing away from town up Penticton creek.”
Kerluke said the blaze remained on the ground and has not gone up any trees.
Cause of the fire is unknown.