It happened around 9:50 a.m. on the 3500 block of Frankford Avenue.
Chopper 6 was over the scene as firefighters worked to get the fire under control.
"It was pitch black up in the air," recalled neighbor Diane Smalls.
Authorities say despite their best efforts, the 74-year-old was pronounced dead at the scene.
She was later identified as Barbra Czekaj.
One neighbor told Action News he ran to Czekaj's home once he saw the flames to try and save her.
"It was crazy. I really wasn't thinking. I just jumped into action," said Jerry Hudgens.
Hudgens was painting his house when he realized there was a fire nearby.
He told Action News he used all his strength to break down the front and back doors with a sledgehammer.
"Tried to get in there and get her. I knocked a couple of windows loose. The smoke was too much," Hudgens said.
"The neighbors in the neighborhood made a valiant effort to try and get into the dwelling behind us along with police, so we want to thank them," said Philadelphia Fire Department Assistant Deputy Commissioner Derek Bowmer.
Now, people in the area say they are reminiscing on the good memories Czekaj left behind after living on the block for over 30 years.
"Barbara was a wonderful woman. She would give her shirt off her back. She would do anything for anybody," said neighbor Deborah Redding.
"She was a nice lady and hate to see her go this way," said Nathaniel from South Philadelphia. "That's a tragedy."
The fire marshal said authorities are still investigating what sparked the fire.