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The powerful quake is 7.0 on the Richter scale – prompting terrified holidaymakers at the tourist hotspot to scramble for safety.
Model Chrissy Teigen, who is on holiday on the island with husband John Legend, told her 10.6million Twitter fans how she walked outside naked clutching her newborn baby Miles as the tremor hit.
She tweeted: "Bali. Trembling. So long.
"MASSIVE earthquake."
"It felt like a ride. 15 solid seconds of “hooooooly s**t this is happening."
The US Geological Survey confirmed a magnitude seven quake struck Bali's neighbouring Lombok island around 7.45pm local time.
The region is hugely popular with tourists from across the globe.
It comes exactly one week after another 6.4 magnitude quake claimed the lives of 14 people and leaving 162 hurt.
The warning covers North Lombok, East and North Bali, the north side of East Java, Southeast Madura, South Kalimantan, and South Sulawesi.
Today's quake, which struck at a depth of 15km off the north coast of Lombok, saw people flee homes, hotels and restaurants, as windows and doors rattled in their frames.
And hospitals were forced to take patients outside for treatment.
"All the hotel guests were running so I did too. People filled the streets," said Michelle Lindsay, an Australian tourist.
"A lot of officials were urging people not to panic."
The country's disaster management agency urged people to stay away from the sea and beaches.
However, the warning of a tsunami with waves of up to 0.5 metre has now been withdrawn.
Officials said airports on both Bali and Lombok were operating normally despite minor damage.
"Both airports are operating as normal, now we are cleaning up the airports. Some parts of the ceiling have fallen off, but no one is hurt," said Handy Heryudhitiawan, corporate secretary at operator Angkasa Pura 1, which runs both airports."
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