Croatian police say that the fire started close to the beach clubs where the Fresh Island music festival was taking place.
[Ads /]
Cell phone video shows people at the concert running from the beach as the event was starting.
"There was a forest fire near Zrce Beach last night. After being advised by the police and emergency services to evacuate due to heavy winds, we guided festival goers to the parking area near Noa Club which was a safe distance from the fire," Fresh Island fest posted on Twitter.
A statement says no one has been injured.
[Ads /]
Festival organizers said they are doing everything they can to make sure the party continues.
The Zrce beach on the island of Pag is famous for summer festivals and parties.
It was not immediately clear what caused the fire.
The Associated Press contributed to this report.