It happened at a house on Sagetree and Kirkholm around 1am.
"I looked at the window from the bedroom upstairs, and there was a lot of smoke within minutes," said neighbor Erin Rios. "The house was entirely on fire."
When firefighters arrived, the one-story home was already engulfed in flames. Once they could make their way inside, they found the victim, a 69-year-old woman, who was unable to escape the fire.
Neighbors say they heard an explosion, and came outside to see the flames destroying the home.
"Neighbors informed us that the occupant had oxygen bottles in her home, and they believed it was oxygen bottles exploding in her home. There were several bottles," said Deputy Chief Fernando Herrera with the Houston Fire Department.
There was also a 38-year-old man inside the home at the time. He was able to get out safely.
The woman who died in the fire hasn't been identified. Arson investigators are on the scene to help determine the cause of the fire.