Neighbour Toni Gebbie, 28, said she heard "a cracking noise" and saw flames rising from her neighbour's home.
"I ran into the street and saw my neighbour outside her house. I asked her if anyone was inside, and she said no."
Her sister Nicole tried to calm down her "distraught" neighbour.
"I've never seen anyone so out of her mind, absolutely traumatised. It scared me," she said.
Shortly after the fire was brought under control, firefighters found Miley and acted quickly - a move that saved her life, according to attending St John paramedic Curt Ward.
After dealing with "a human patient and deeming she was okay", he helped resuscitate Miley.
"We aren't trained to treat animals but we help where we can," he said.
A second family dog managed to escape the fire, and was being cared for by another family in the street.
While fire safety investigators scoured the charred remains of the couple's blackened kitchen, Harewood acting fire station officer Steve Heritage paid tribute to his colleague for saving Miley's life.
"Andrew was bloody lucky to find the dog. He did well."