Hundreds of people living on the slopes of Guatemala's Fuego volcano evacuated their homes throughout Tuesday after a huge eruption spewed lava and plumes of ash.

Emergency services issued a red alert, the most severe warning, after Central America's most active volcano erupted on Monday morning, with conditions intensifying by nightfall.

Rivers of lava streamed down the 3,763-metre volcano located less than 100 kilometres from Guatemala City, while ash rose some six kilometres into the sky.

"Since early morning it was active. That night, the alarm was raised that we needed to evacuate," local resident Alejandro Garcia told the AFP news agency.

Villagers left of their own accord out of fear, Garcia said, describing terrifying scenes of lava oozing down the mountainside.