Two children have died after a fire ripped through a Queensland home earlier this week.

Sisters Hallie, two, and Evie, 13, were pulled from the second storey of a burning house in Bushland Beach by emergency crews on Sunday morning.

They suffered severe breathing issues and were taken to Townsville University Hospital in a critical condition.

Teenage girl eating food with spoon

Evie, 13, has died in hospital. (Supplied: Townsville Hospital and Health Service)

Queensland Police says the two girls died from their injuries on Thursday.

Two teenage boys were also in the house at the time, but managed to escape with smoke inhalation injuries.

Three police cars and vans in Townsville street

Police are investigating the cause of the fire. (ABC News: Baz Ruddick)

Townsville Child Protection and Investigation Unit (CPIU) is investigating, and authorities are asking anyone with information to come forward.

The cause of the fire is not yet determined and is not being treated as suspicious.

In a statement earlier in the week, the family said they had been very thankful to support from the community and health and emergency services.

A woman holds a toddler, standing next to a girl.

Hallie and Evie with their mother, Karah. (Supplied: Townsville Hospital and Health Service)

“Our family is devastated by what has happened, and we are still trying to come to terms with the scale of this tragedy,” the statement said.

A fundraiser to support the family has raised more than $85,000.