A driver allegedly parked his motor home across northbound lanes of the Federal Highway, doused it with petrol, and set it alight on Sunday.
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The vehicle fire shut all lanes north towards Sydney near Lake George for two hours, police say.
The 64-year-old driver from Batemans Bay ran from the scene, but was later located by NSW officers.
The flaming wreckage of the motor home caused a significant build-up of traffic on the busy route between Canberra and Sydney.
No one other than the driver was injured in the fire, according to NSW Police.
The driver was discovered to have suffered only minor injuries when police found him.
NSW Police advised motorists to avoid the area or delay their journey.
Police say their investigations into the incident are continuing.