The previously dormant volcano, more than 500 metres (1,640 feet) high, on the northern island of Kadovar off PNG erupted on January 5 with all 600 residents evacuated.
But volcanic activity significantly escalated in recent days, culminating in a big blast on Friday, the Rabaul Volcanological Observatory (RVO) said.
"Big rocks were blasted out and there was a significant amount of material involved," the RVO told local news website Loop PNG.
More than 3,000 residents on surrounding islands Biem and Ruprup were also evacuated, local reports said, after fears a second volcano on Biem had also erupted.
Local volcanologists have yet to confirm the second eruption, with the RVO saying the tremors could be from the ongoing activity on Kadovar.
PNG Prime Minister Peter O'Neill said his government was supporting the evacuations as he warned of a possible tsunami.
"Tsunamis can travel hundreds and thousands of kilometres across open water, so communities must be ready if there is a landslide."
He added that flights had been cancelled and all ships and boats not involved with the evacuation effort were to keep clear of the area.
Tsunamis can be triggered by undersea earthquakes or due to the eruption or collapse of volcanoes located on coastlines, according to the United States Geological Survey.
PNG sits on the Pacific "Ring of Fire" where high volcanic and seismic activity is the norm.
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