Residents of Lisden Care Home were evacuated after a fire broke out on Thursday night.
The fire is understood to have started in the sluice room in a wastepaper bin.
Staff discovered the fire just before midnight and began evacuating residents.
An explosion was reported and is thought to have occurred due to an aerosol can in the bin.
Thirty-five of the 41 residents were evacuated to the front foyer of the building. The remaining residents were allowed to remain in their rooms as the fire was already extinguished and their rooms were unaffected by smoke.
No one was hurt in the incident.
A spokesperson for Tayside Fire and Rescue praised the swift actions of the care home staff, which he said had avoided the incident escalating.
He said: “The fire was contained to the area of the sluice room and was quickly extinguished.
“The staff did a great job in evacuating the residents and prevented the situation becoming worse.”
Tony Banks, chairman and founder of Balhousie Care Group, also praised staff for the way they handled the incident.
“A small fire broke out in the sluice area of the care home, which was reported at 11.50pm on Thursday night,” he said
“Of course our priority is the safety and wellbeing of residents and in line with our procedures, the staff very quickly evacuated everyone to safe areas inside the home until the all-clear was given. No one was hurt and the fire was dealt with quickly, and residents were allowed to return to their rooms.
“We are very proud of our staff for the calm and efficient way in which they dealt with the situation, and the fire brigade also praised their efforts as a team. The damage is contained to the sluice area and the care home is open and running as normal.”