Authorities say the woman, 48, was killed inside her home, likely from smoke inhalation.

"I saw the paramedic pumping on her chest and I was like 'oh,' I knew it was probably bad," Virginia Mickelson, neighbor, said. 

Fire crews found a dog that was barely breathing, and gave the dog oxygen, helping it to survive.

Fire officials first believed the fire was happening at the Promised Land restaurant in the 24200 block of 75th Street in Paddock Lake.

They searched the restaurant and did not find any fire.

They still smelled smoke, which led them to the home behind the restaurant, where they found the woman lying on the floor inside the smoke-filled home.

"First we initiated a search and rescue, found a victim on the floor, removed the victim, then we had one small room on fire, the utility room that appeared to be coming from the dryer," said Town of Salem Fire Chief Mike Slover.

The woman was given CPR and taken to St. Catherine's Hospital, where she was pronounced dead.

Investigators say a buildup of lint in the clothes dryer is to blame. They say it was smoldering from some time, but never ignited. The smoke and fumes filled the house.

The outside of the house itself was not damaged, because the fire was contained to the home's inside.

Virginia Mickelson says the woman lived alone with her dog.