Shortly after 1:30 p.m., firefighters and police units responded to the rear of and on School Street for a reported structure fire.
Fire Chief Jason Gilliland said fire officials are still trying to determine where the fire originated and said both businesses sustained heavy smoke damage in the blaze. A full report, he said, will likely be issued sometime tomorrow morning.
As the first fire trucks arrived on scene, kitchen workers from 5 Corners Kitchen were seen clearing boxes out of the back of the restaurant and black smoke could be seen billowing out of the doors leading to the restaurant's kitchen.
At Terry's Ice Cream Shop, employees were forced to leave the building because the interior of the ice cream parlor had already been completely filled with smoke.
Shortly after arriving on scene, local firefighters used ladders to access the roof of the building and could be heard working with chainsaws in an attempt to open a space for the heat and smoke to escape.
When a space was cleared, a large black plume of smoke could be seen rising more than 50 feet into the sky over the center of town.
The intersection and much of downtown Marblehead was closed to traffic for more than two hours and the roadway was lined with on-lookers until about 4 p.m.
The fire was knocked down in about 45 minutes and firefighters are currently investigating the cause of the blaze.
Fire officials on scene were discussing a possible electrical malfunction in the basement, although no official cause has been given.
The inside of Terry's Ice Cream looks like it suffered severe smoke damaged while the dining area of 5 Corners looks like it has only minor smoke damage.
Marblehead Patch is on scene and will be posting more videos and information as it becomes available.