Hundreds of residents have forced to evacuate their homes after a surprise eruption from a dormant volcano, carpeting the village below with dust and ash.

A volcanic plume of ash and gases rose more than two kilometres into the air over Kadovar Island off the northeastern coast of Papua New Guinea.

Experts are racing to uncover the cause of the unexpected eruption as lava continues to spew from the volcano, covering more than 50 per cent of the land.

Wewak District Administrator Ricky Wobar wrote on social media that the situation was 'critical' and 'worsening'.

Authorities rushed to help people displaced by the occurrence as 600 people fled the island, some in dinghies, just after 12pm on Friday afternoon.

According to news.com.au, the Rabaul Volcanological Observatory has warned Papua New Guinea that the aftermath of the explosion could be a devastating tsunami.