About 22 firefighters are battling the 15-hectare fire, which is burning in a heavily wooded area with very minimal access, according to Marg Drysdale, a fire information officer with coastal fire centre.
Squamish is more than 200 kilometres from the fire, which is burning near the southeast end of Clendinning Provincial Park.
"It's extremely smoky in the area. People who are down in Squamish are actually reporting a lot of smoke in the area," said Drysdale.
The air quality reading for Squamish hit nine out of 10 on Monday.
People with breathing issues are being reminded to stay inside and contact the Ministry of Environment if they are concerned about the impacts of the smoke.
"There are no structures in the area at this time. It's in a well-treed area. We have people on the ground. If there is potential danger for anyone, of course we would let people know," said Drysdale.
The fire was spotted on Sunday and is believed to be caused by humans, but not industry.
Meanwhile the 1,270 hectares Cisco Road wildfire near Lytton remains about 20 per cent contained.
While open fires larger than one metre are banned across most of B.C. except the northwest, there is no ban on campfires in place.
Google Maps: Clendinning Provincial ParkSuggest a correction