| | Firefighters expect the wildfire to last a couple of days |
A number of buildings were destroyed and thousands of local residents evacuated as the flames swept across the hills overlooking the ocean.
The homes of Mel Gibson and Barbra Streisand are in the threatened area.
The wildfire is thought to have been caused by a power cable which ignited after being blown over in heavy wind.
The ground beneath is also tinder dry after one of the driest and hottest summers on record, officials said.
During a long heatwave in July, wildfires scorched thousands of acres across California, Arizona, Nevada, Utah, South Dakota, Washington, New Mexico, Oregon, Idaho and Montana.
'0% contained'
Fanned by high winds of up to 80 mph (130km/h), the wildfire around Malibu had burnt about 1,250 acres (505 hectares) by mid-afternoon on Sunday, officials said.
Among the buildings destroyed in the town, which has 13,000 residents, were the famous Castle Kashan and a Presbyterian church. No-one was reported injured.
"This fire is 0% contained, which means we are at the mercy of the winds," Malibu Mayor Pamela Conley Ulich said.
The chief of the Los Angeles County Fire Department, Michael Freeman, said the blaze was expected to last a couple of days and that until it was extinguished, "literally thousands of homes are going to be threatened".
The coastal area is home to many celebrities, including Mel Gibson, Barbara Streisand, Richard Gere, Pierce Brosnan, Dick Van Dyke, Ted Danson and David Geffen.
Hundreds of firefighters are currently battling the blaze and helicopters are being used to dump water on the flames.
The governor of California, Arnold Schwarzenegger, said he was receiving regular updates on their progress and would send more rescuers if necessary.
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