Fierce flames shot from the multi-story home on North Avenue in Plainfield early Sunday morning.
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When firefighters and police arrived, they were told that there were people still trapped inside, according to the Plainfield Fire Department.
First responders worked quickly to remove multiple people by ladder from the second and third floors.
At the same time, fire crews entered the building to battle the blaze and continue searching for anyone trapped inside.
That's when rescuers found a young girl who had succumbed to her injuries, as well as another child.
The second child was transported to Hackensack Meridian Health JFK Medical Center and treated for smoke inhalation.
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A total of 23 people from four families were displaced, according to Red Cross New Jersey.
There's no word on what caused the fire.
There were no other reported injuries.
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