The blaze first started in a terraced house in Bran, on the Plas Madoc Estate, and spread through the roof space to four adjoining houses.
The first house is thought to be empty but people living in neighbouring houses were roused by smoke alarms and firefighters attended at 12am.
Resident Richard Gardner said that everyone around was out in the street to see what was happening.
"It was just after midnight and there were flames and smoke everywhere.
"The fire brigade arrived quickly and they worked hard to tackle the blaze and everyone was out looking at it. It is a terrible thing to happen," he said.
Such was the ferocity of the fire that three pumps from Wrexham, one from Johnstown and one from Llangollen attended the scene, as well as the aerial ladder platform from Wrexham and the incident command unit from Colwyn Bay.
A further three pumps were called from Chirk, Oswestry and Ellesmere.
Firefighters used hose reels, a main jet, breathing apparatus and water from the aerial ladder platform to tackle the blaze and finally got it under control at 4am.
Later on this morning there were still some fire officers dampening down at the scene.
Police were at the scene to help along with ambulance staff, though officers believe that no-one was injured in the blaze.
Staff from Wrexham Council were helping to rehouse evacuated residents.
"It is not yet known what started the blaze but fire investigation teams are conducting an investigation into the cause," said a spokesman for North Wales Fire and Rescue Service.
The properties were fitted with hard-wired smoke detectors which sounded the alarm in the occupied houses.
Kevin Roberts from North Wales Fire and Rescue Service said: "Working smoke detectors give valuable early warning to all in a home when a fire occurs.
"This is especially so during the night time when people are asleep.
"Without this life-saving equipment the risk of losing a life is increased dramatically and there is no excuse for not having them because North Wales Fire and Rescue Service provide and fit them free as part of our home fire safety check.
"This incident highlights the importance of working smoke detectors as a number of them were working successfully in adjoining properties, alerting the occupants to the fire."
For a home fire safety check call 0800 169123.
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