The Kat-A-Korner at the south end of Sullivan caught fire.
The call came in at 11:50 Wednesday night. Crews battled the blaze for several hours.
The fire is believed to have started in the kitchen, but the Indiana State Fire Marshal’s Office has been called to help determine the exact cause of the blaze.
No one was injured.
The restaurant is a staple in the community. It has been serving home cooked meals at the same location since 1933. It was famous for its biscuits and gravy, chicken noodles and Friday night fish.