Eight firefighters were sent to the two-storey semi-detached house on West Avenue in Oldbury after the e-cigarette exploded at around 1.40pm.
Nobody was injured in the blaze.
Pictures show the major fire damage in the front bedroom on the first floor caused by the e-cigarette.
The house is located near to the Birmingham Road and Dudley Golf Club.
Oldbury Fire Station, who attended the fire, tweeted: "In attendance at a house fire caused by an exploded e cigarette.
"Please be aware."