Fire crews were called to the Westpoint Mobile Home Park in the early hours of Wednesday morning after residents were woken up by a loud bang.
"You could hear the windows going, bang and then you could hear the glass breaking," neighbour Brenda Carter said.
Carter, who lives just two homes along from the gutted unit said she could see smoke pouring out of it.
West Kelowna Fire Chief Wayne Schnitzler confirmed that the mobile home was completely gutted, and that the body of a man and a dog were found in the wreckage.
Resident Carol Curtis said a man in his 50s lived in the burned out home, and that they used to walk their dogs together.
"We're feeling really bad. Because there's a family and nobody wants something like this to happen in their neighbourhood," she said. "It's a shame."
Once the B.C. Coroners Service finishes its investigation, the fire department will begin investigating the cause of the fire.