Tropical Cyclone Hayley has been downgraded to a category one storm but is still producing wind gusts of up to 120km/h as it moves through the western Kimberley.
The warning zone in Western Australia covers north of Broome, impacting Derby, Cockatoo Island, Beagle Bay and Cape Leveque.
Damaging wind gusts of up to 100km/h are occurring in affected areas, with the Bureau of Meteorology warning the region also faces heavy rainfall with the potential for flash flooding.
The system is expected to weaken as it moves further inland.
An evacuation centre was open at the Broome Recreation and Aquatic Centre.
The storm comes on the heels of Tropical Cyclone Fina, a category-three system that hit Darwin in late November.
In 2023, the region experienced heavy rainfall that led to flooding across many communities when ex-Tropical Cyclone Ellie made landfall.
The Kimberley region was hit hard with enormous rainfall totals and severe floods.
The latest cyclone alert comes as other parts of the nation are battling flooding with multiple severe weather warnings issued for New Year's Eve.
In Queensland, a man in his 70s was found dead inside a submerged car in the far northern town of Normanton on Tuesday afternoon.
The Bureau of Meteorology warns isolated heavy falls of 100mm are possible in parts of the Northern Goldfields and Upper Flinders, North West and Central West districts.
Six-hourly rainfall totals between 100 and 180mm are likely, with the potential of isolated falls above 220mm, in areas from about Townsville to Yarrabah.
The town of Innisfail in the far north of the state recorded 153mm of rainfall within two hours on Tuesday night.
Disaster relief has been activated for five north Queensland councils following widespread flooding caused by monsoonal rainfall over the Christmas period.
The extra funding will support councils' response, clean-up and recovery, including emergency roadworks and repairs to public assets.
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