Emergency services responded to a call to Moon's Sushi on Junction Street at 12.40am Sunday, January 16 and found the restaurant heavily smoke logged with a fire inside.

Half an hour later, two units from NSW Fire and Rescue extinguished the fire.

"There weren't any visible flames, but there was a fire inside which consumed a lot of the place," said Fire and Rescue NSW station officer Ian Walters.

"It was pent up because of a lack of oxygen and was smouldering, damaging the whole interior."

Moon's Sushi is "badly damaged" and is not expected to open for a few months.

"The structure itself isn't damaged but the whole interior - the roof, the ceiling and all the contents of the kitchen - will have to be replaced," said Mr Walters.

"They're going to have to redo it. It'll be out of action for quite a few months."

No one was in the restaurant at the time.

Nowra Village Hot Bake, next to Moon's Sushi, was slightly affected by the smoke.

The site was handed to the South Coast Police District where a crime scene was established.

As at Monday, no updates were given on the investigation.

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