After hearing screams and shouts of “help me, help me”, at 7:30am on Sunday, residents of Raglan Place, South Melbourne, rushed out to help.
They found an abandoned mattress, which they pushed under the window so that the stricken man could jump to safety.
Martin Goggons said neighbors saw the man dangling from the top floor of the building.
“We ran around the back and there was a mattress,” he told 9News.
“We grabbed the mattress and pulled it out.
“After a few minutes he jumped on it.”
The man is in critical but stable condition with a broken leg after the fire.
Firefighters also extracted a man in his 40s from the building.
He is in a serious but stable condition after smoke inhalation
The fire is believed to have started in a kitchen.