Thousands of Australians were woken by an early morning 3.2 magnitude earthquake.

The quake was recorded off the coast of Flinders shortly after 4.30am on Thursday at a depth of 10km.

The tremor was felt across Melbourne, the Mornington Peninsula, and as far as Geelong. More than 500 reports were submitted to Geoscience Australia. The tremors were reported just after a huge 6.5 earthquake rocked Indonesia with a tsunami feared.

No extensive damage has been reported.

Residents who felt the tremor said the quake lasted 5–10 seconds.

'I was just dozing away, it sounded like a snap and then a rumble,' one told 3AW hosts Ross and Russ.

Many others took to social media.

'We are in Rye and felt this one. It sounded like thunder going through the house and the windows rattled and house shook,' one posted.

Another added: 'Wife woke up (and) said that definitely was an earthquake. I’m like yeah, yeah your dreaming love ... I guess she was right. Felt in Rosebud.'

The risk of a tsunami has been ruled out.

'You sort of have to get up into the sixes and sevens to see that sort of thing,' Seismology Research Centre chief scientist Adam Pascale told 3AW.

He added that it's not uncommon for tremors to be felt on the Mornington Peninsula.

'Activity in that area is not unheard of but certainly not as much as you might see in Gippsland or through the Great Dividing Range,' Mr Pascale said.

'I think the most significant one was in 1971 off Flinders … but this is the largest for a number of years [since] I think in the late 1990s.'