In the settlement of Kaokalam, some 370 miles (600 km) northwest of Port Moresby, the capital of the island nation in the South Pacific, rescue operations are underway.
As many slept on Friday, the disaster hit at almost three in the morning local time.
More than 100 people have reportedly died, according to Australian media, however locals think the actual number is closer to 300. The officials have not yet released an official estimate.
Social media footage showed residents rescuing victims from under the debris.
Ninga Role, a native of Kaokalam who was not present when the avalanche occurred, stated that his brother and cousin were dead.