Eight fire engines and around 60 firefighters were called to a fire at a refuse and recycling centre on Chigwell Road in Woodford Green.
Around 28 tons of mixed refuse was destroyed by the blaze and the shed was damaged. There were no reports of any injuries.
Station Commander Dave Reed, who was at the scene, said: "Around 28 tons of household waste was alight in a covered recycling shed.
"There was quite a lot of smoke in the area so we advised local residents to keep their doors and windows closed.
"No roads were shut but we had a lot of resource on scene so the surrounding roads were busy and we asked people to avoid the area if possible."
The Brigade was called at 0606 and the fire was under control by 0821. Fire crews from Woodford, Chingford, Leytonstone, Ilford, Stratford and surrounding fire stations were at the scene.
The cause of the fire is under investigation.