Four fire crews were called to the house in the hamlet of Wadbister shortly after 1.15pm today.
The crews attended from Lerwick, Sandwick and Brae stations.
It is understood that one person was treated for smoke inhalation, however, they did not require any further treatment.
Firefighters used breathing apparatus and hose reel jets to tackle the blaze.
The fire was brought under control by 5.53pm, with one crew remaining a the scene for a short time afterwards.
Picture from the scene, shared on the BBC show the house to be without a roof, and the inside of the house to be completely destroyed.
A fire spokeswoman said: “There was a fire at a property they think as house in Wadbister in Shetland at 1.15pm.
“Four appliances from Lerwick, Walls and Sandwick attended and the stop message came back at 5.53pm.”
The Scottish Ambulance Service was in attendance, but police were not called to the scene.
A spokesman for the ambulance service said: “We received a call yesterday to attend an incident in Wadbister, Shetland. We dispatched one ambulance to the scene.”
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Fire crew tackle blaze at home in Shetland for more than four hours
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