James City County Fire is reporting a school bus fire at Scotts Pond Drive and East Grace Court.
Assistant Chief Bob Ryalls says units arrived on scene just after 4:40 p.m. to find heavy fire coming from the rear engine compartment.
All 25 students and the driver were able to get off the bus safely with no injuries.
Another bus was brought in to pick the students up. Parents also arrived to pick up their children.
The cause of the fire is under investigation.