On 19 January 1997, temperatures soared above 40 °C and northerly winds gusting at 70 km per hour contributed to two damaging bushfires near Melbourne. The fires in Mt Eliza burnt two homes and evacuations were required at Mt Martha, Arthur's Seat and the Mornington Peninsula. Approximately 250 bushfires burnt areas of Victoria on 21 January, a 41.2 °C day. The worst affected areas were Ferny Creek, Upwey and Kalorama in the Dandenong Ranges where it took 1500 firefighters and six water-bombing aircraft to control the 3700 ha forest blaze. In addition to the two houses at Mt Eliza, 41 houses were destroyed and 45 damaged in the Dandenongs. Three people died at Ferny Creek and approximately 40 were injured throughout the State.

The Insurance Council of Australia estimated the 1997 damage at $10 million, with the 2011 estimated normalised cost of $29 million.