It started at around 11:45pm on Monday, Duty Officer of fire service headquarters control room Mahfus Riven told UNB.
It took 12 firefighting units to contain the fire.
Locals told UNB that 500-600 shanties were completely destroyed in the fire. The claim could not be verified independently.
Photos and footages from site showed the area covered in thick black smoke as volunteers and firefighters scrambled to extinguished the pockets of flames.
“It’s dark here and I can barely see because of the smoke,” our correspondent said.
The fire service said the cause of the fire could not be known yet and it has received no report of casualties so far.
Fires at slums in Dhaka, home to many low-income people, are quite common and leave thousands of their residents homeless.
According to data compiled by Bangladesh Fire Service and Civil Defence, there were 174 fire incidents at slums in Dhaka, Chattogram and Rangpur last year.