Emergency services ordered everyone in the Happy Valley area to leave,but late on Sunday said the fire was now expected to stay clear of the township overnight.
An escalation in the weeks-long battle to contain bushfires which have burned half of the World Heritage-listed island has done little to ease concerns for those who frequent it.
Three million litres of water and retardant gel has now been dropped,with almost one million on Thursday alone,as it approaches two months since the fires were sparked.
Analysis of the damage to the World Heritage-listed island will be passed to the United Nation's management body once the fires still burning are contained.
A fire front about 2 kilometres east of the Kingfisher Bay Resort and Village remained of'most concern'for firefighters on Thursday morning ahead of shifting winds.
Better-than-expected conditions could enable firefighters to steer the blaze around the resort,as fears of long-term damage to the island rise.
Queensland Premier orders a top-level review of the response to the bushfire apparently sparked by an illegal campfire in October.
Fire crews are battling to hold back the bushfire on Fraser Island on two fronts,which is coming close to tourist areas on either side of the island.
Hail damage over the weekend has caused damage across south-east Queensland.
Shanon Hoffman entered the water about 6pm on Monday and was reported missing 2½ hours later,triggering an extensive search.
As the state faces more bushfires and cyclones this summer,the number of SES volunteers has also dropped,according to a Queensland Fire and Emergency Services report.