A bus carrying 50 people to the NSW snowfields was completely destroyed after catching fire near Jindabyne, police say.

NSW police said the bus, which had 49 passengers and the 56-year-old driver on board, caught alight on Kosciuszko Road near Wilsons Valley about 4.30pm Saturday.

The driver stopped the bus when he noticed smoke coming from the engine, and all the passengers got off before it caught fire.

Police took the passengers to a nearby ski lodge, and the road was closed in both directions for a number of hours.

"Fire and Rescue NSW attended and extinguished the blaze; however, the bus was completely destroyed," police said.

"No one was injured. Inquiries are continuing."

A person caught in the traffic livestreamed the fire on Facebook.