According to an Iraqi source, a fire was reported at a hotel near the holy shrine of Hazrat Abbas (AS) on Tuesday.
Firefighters managed to extinguish the fire, the source added, Shafaaq news website reported.
There has been no report of casualties or injuries.
The city of Karbala is home to the holy shrines of Imam Hussein (AS), the third Shia Imam, and his brother Hazrat Abbas (AS).
Every year, millions of pilgrims from all over Iraq and other countries, including Iran, travel to the city to visit the holy shrines.